High Court of Karnataka Allows Petition Under Section 482 CrPC Challenging Rejection of Application Under Section 305(6) CrPC for Appointment as Company Representative. The court held that the trial court's order doubting the genuineness of resignation was unsustainable and directed fresh consideration.

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

The petitioner, Krishnaswamy Sridhar, was accused No.4 in Special C.C. No.245/2002 pending before the XLVI Additional City Civil and Sessions Judge and Special Judge for CBI cases, Bangalore. The case arose from a CBI FIR against M/s Emvee Comforts and Travels Limited and M/s Dhanapriya Housing and Finance Limited (collectively 'the Company') and others for offences under Section 120-B IPC read with Sections 409, 420, 467, 468, 471, 474, 477-A IPC and Section 13(2) read with Section 13(1)(d) of the Prevention of Corruption Act, 1988. The petitioner, a director of the company, filed an application under Section 305(6) of the Code of Criminal Procedure, 1973 (CrPC) seeking to represent the company before the court, claiming he had resigned as director. The trial court dismissed the application on 04.07.2018, holding that the petitioner's resignation was not believable and that he must continue as a representative of the company. Aggrieved, the petitioner filed the present criminal petition under Section 482 CrPC. The High Court observed that the trial court's order was unsustainable as it pre-judged the issue of resignation and exceeded the scope of Section 305(6) CrPC. The court set aside the impugned order and directed the trial court to consider the application afresh in accordance with law, without being influenced by its earlier observations. The petition was allowed.

Headnote

A) Criminal Procedure Code - Section 305(6) - Representation of Company - The petitioner, accused No.4 and a director of the company, sought to represent the company under Section 305(6) CrPC after resigning as director. The trial court dismissed the application doubting the genuineness of resignation. The High Court held that the trial court's order was unsustainable as it pre-judged the issue and exceeded the scope of Section 305(6) CrPC. The court set aside the order and directed the trial court to consider the application afresh in accordance with law. (Paras 1-5)

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Issue of Consideration

Whether the trial court erred in dismissing the petitioner's application under Section 305(6) CrPC seeking to represent the company, on the ground that his resignation as director was not believable.

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Final Decision

The High Court allowed the petition, set aside the order dated 04.07.2018, and directed the trial court to consider the application under Section 305(6) CrPC afresh in accordance with law, without being influenced by its earlier observations.

Law Points

  • Section 305 CrPC
  • Section 482 CrPC
  • Right of accused to represent company
  • Resignation of director
  • CBI cases
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Case Details

2021 LawText (KAR) (09) 17

Criminal Petition No.5697 of 2018

2021-09-16

M. Nagaprasanna

Ganesh Kumar R. (for petitioner), P. Rasanna Kumar (for respondent)

Krishnaswamy Sridhar

State by CBI

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Nature of Litigation

Criminal petition under Section 482 CrPC challenging an order dismissing an application under Section 305(6) CrPC.

Remedy Sought

Petitioner sought to set aside the order dated 04.07.2018 and direct disposal of proceedings in accordance with law.

Filing Reason

The trial court dismissed the petitioner's application under Section 305(6) CrPC to represent the company, doubting the genuineness of his resignation as director.

Previous Decisions

The trial court passed the impugned order on 04.07.2018 in Spl.C.C.No.245/2002.

Issues

Whether the trial court's order dismissing the application under Section 305(6) CrPC was sustainable in law.

Submissions/Arguments

Petitioner argued that the trial court erred in doubting his resignation and dismissing the application. Respondent CBI supported the trial court's order.

Ratio Decidendi

The trial court's order dismissing the application under Section 305(6) CrPC was unsustainable as it pre-judged the issue of resignation and exceeded the scope of the provision. The court must consider the application afresh without prejudging the matter.

Judgment Excerpts

The petitioner in this petition calls in question the order dated 04-07-2018, passed by the XLVI Additional City Civil and Sessions Judge and Special Judge for CBI cases at Bangalore, in Spl.C.C.No.245 of 2002. What has driven the petitioner to this Court is, calling in question the proceedings in a particular order passed by the criminal Court dated 04-07-2018, dismissing the application filed by the petitioner under Section 305(6) of the Cr.P.C.

Procedural History

The petitioner filed an application under Section 305(6) CrPC in Spl.C.C.No.245/2002 pending before the Special Judge for CBI cases, Bangalore. The trial court dismissed the application on 04.07.2018. The petitioner then filed Criminal Petition No.5697/2018 under Section 482 CrPC before the High Court of Karnataka, which was allowed on 16.09.2021.

Acts & Sections

  • Code of Criminal Procedure, 1973: 305, 305(6), 482
  • Indian Penal Code, 1860: 120-B, 409, 420, 467, 468, 471, 474, 477-A
  • Prevention of Corruption Act, 1988: 13(2), 13(1)(d)
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