High Court of Karnataka Quashes Criminal Proceedings Against Companies and Directors in Legal Metrology Act Cases — Pre-Cognizance Notice Not Issued, Violation of Principles of Natural Justice. Complaint Filed Without Giving Opportunity of Hearing Under Section 36 of Legal Metrology Act, 2009, Proceedings Quashed.

High Court: Karnataka High Court Bench: DHARWAD In Favour of Accused
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Case Note & Summary

The judgment pertains to four criminal petitions filed under Section 482 of the Code of Criminal Procedure, 1973 (Cr.P.C.) seeking quashing of complaints and cognizance orders passed by the Principal Civil Judge and JMFC, Gokak, for offences punishable under Sections 31 and 36 of the Legal Metrology Act, 2009. The petitioners include M/s P J Margo Pvt. Ltd. and its Managing Director, and Nestle India Limited along with its directors and officers. The respondent is the State of Karnataka represented by the Legal Metrology Officer, Gokak Sub-Division. The facts reveal that the Legal Metrology Officer filed complaints alleging that the petitioners were selling pre-packed commodities without proper declarations as required under the Legal Metrology (Packaged Commodities) Rules, 2011. The Magistrate took cognizance of the complaints without issuing any prior notice to the petitioners. The petitioners challenged the proceedings on the ground that Section 36 of the Legal Metrology Act, 2009 mandates that no court shall take cognizance of an offence under the Act except upon a complaint made by the Director or authorized officer, and that before taking cognizance, the court must issue a notice to the accused to show cause. The court analyzed the provisions of Section 36 of the Act and held that the requirement of pre-cognizance notice is mandatory and not directory. The court observed that the Magistrate had mechanically taken cognizance without following the procedure prescribed under Section 36, which violates principles of natural justice. Consequently, the court quashed the impugned orders and complaints in all four petitions, allowing the petitions.

Headnote

A) Criminal Procedure - Quashing of Complaint - Section 482 Cr.P.C. - Pre-cognizance Notice - The court considered whether the Magistrate could take cognizance of a complaint under Sections 31 and 36 of the Legal Metrology Act, 2009 without issuing a pre-cognizance notice to the accused. Held that Section 36 of the Act mandates issuance of notice before taking cognizance, and failure to do so vitiates the proceedings. (Paras 1-10)

B) Legal Metrology - Offences by Companies - Sections 31 and 36 Legal Metrology Act, 2009 - Vicarious Liability - The court examined whether directors and officers of a company can be prosecuted without specific allegations of their involvement. Held that in the absence of pre-cognizance notice and specific averments, the complaint against directors is liable to be quashed. (Paras 1-10)

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Issue of Consideration

Whether the Magistrate could take cognizance of the complaint under Sections 31 and 36 of the Legal Metrology Act, 2009 without issuing pre-cognizance notice to the accused as required under Section 36 of the Act?

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Final Decision

The court allowed the criminal petitions and quashed the impugned orders dated 22.06.2020 passed in C.C.No.1040/2020 and the complaints dated 17.06.2020 filed by the respondent.

Law Points

  • Pre-cognizance notice mandatory before taking cognizance under Section 36 of Legal Metrology Act
  • 2009
  • Principles of natural justice
  • Quashing of criminal proceedings under Section 482 Cr.P.C.
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Case Details

2021 LawText (KAR) (02) 6

Criminal Petition No.101102 of 2020, Criminal Petition No.101397 of 2020, Criminal Petition No.101468 of 2020, Criminal Petition No.101477 of 2020

2021-02-26

P. Krishna Bhat

Sri. Raghavendra C. R., Sri. V. Raghuram, Sri. Shashank S. Hegde (for petitioners); Sri. Praveen K Uppar, HCGP (for respondent)

M/s. P J Margo Pvt. Ltd. and its Managing Director; Nestle India Limited and its directors/officers

State of Karnataka, Legal Metrology Officer, Gokak Sub-Division

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Nature of Litigation

Criminal petitions under Section 482 Cr.P.C. for quashing of complaints and cognizance orders under Legal Metrology Act, 2009.

Remedy Sought

Quashing of the impugned order dated 22.06.2020 passed in C.C.No.1040/2020 and the complaint dated 17.06.2020 filed by the respondent.

Filing Reason

The Magistrate took cognizance of the complaint without issuing pre-cognizance notice as required under Section 36 of the Legal Metrology Act, 2009.

Previous Decisions

The Principal Civil Judge and JMFC, Gokak passed the impugned order taking cognizance on 22.06.2020.

Issues

Whether the Magistrate could take cognizance of the complaint under Sections 31 and 36 of the Legal Metrology Act, 2009 without issuing pre-cognizance notice to the accused? Whether the proceedings against the directors and officers of the company are maintainable in the absence of specific allegations?

Submissions/Arguments

The petitioners argued that Section 36 of the Legal Metrology Act, 2009 mandates issuance of notice before taking cognizance, and failure to do so vitiates the proceedings. The respondent argued that the complaint was valid and the Magistrate had correctly taken cognizance.

Ratio Decidendi

Section 36 of the Legal Metrology Act, 2009 mandates that no court shall take cognizance of an offence under the Act except upon a complaint made by the Director or authorized officer, and that before taking cognizance, the court must issue a notice to the accused to show cause. The requirement of pre-cognizance notice is mandatory and not directory. Failure to issue such notice violates principles of natural justice and vitiates the proceedings.

Judgment Excerpts

Section 36 of the Legal Metrology Act, 2009 mandates issuance of notice before taking cognizance. The Magistrate mechanically took cognizance without following the procedure prescribed under Section 36.

Procedural History

The Legal Metrology Officer filed complaints on 17.06.2020 before the Principal Civil Judge and JMFC, Gokak. The Magistrate passed an order on 22.06.2020 taking cognizance of the offences under Sections 31 and 36 of the Legal Metrology Act, 2009. The petitioners filed criminal petitions under Section 482 Cr.P.C. before the High Court of Karnataka, Dharwad Bench, seeking quashing of the order and complaint. The High Court allowed the petitions on 26.02.2021.

Acts & Sections

  • Legal Metrology Act, 2009: 31, 36
  • Code of Criminal Procedure, 1973: 482
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