High Court of Karnataka Quashes FIR Against Businessman in Essential Commodities Act Case — No Prima Facie Case Made Out. Allegations of illegal storage of paddy without license fail as petitioner was a trader and not a miller, and no requirement for license under the Act for mere storage.

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

The petitioner, Lalit Kumar Jain, a businessman and proprietor of M/s. Preetam Traders, filed a writ petition under Articles 226 and 227 of the Constitution of India read with Section 482 of the Code of Criminal Procedure, 1973, seeking quashing of the complaint and FIR registered in Tadas Police Station Crime No.1/2019 for offences punishable under Sections 3 and 7 of the Essential Commodities Act, 1955. The FIR was registered based on a complaint by respondent No.2, a Police Sub-Inspector, alleging that the petitioner was illegally storing paddy without a valid license. The petitioner contended that he was a trader and not a miller, and that there was no requirement for a license for mere storage of paddy under the Act. The court heard the petitioner's counsel, the learned AGA for respondent No.1, and counsel for respondents 2 to 4 and 5. The court observed that the allegations in the complaint did not make out a prima facie case against the petitioner, as the petitioner was not a miller and the storage of paddy by a trader did not require a license under the Essential Commodities Act. The court held that continuing the proceedings would be an abuse of the process of court. Accordingly, the court allowed the petition and quashed the complaint and FIR in Crime No.1/2019 of Tadas Police Station.

Headnote

A) Criminal Law - Quashing of FIR - Essential Commodities Act, 1955, Sections 3 and 7 - Abuse of Process - Petitioner, a trader, was alleged to have stored paddy without license - Court found that the petitioner was not a miller and there was no requirement for a license for mere storage - Held that continuation of proceedings would be an abuse of process of court and quashed the FIR (Paras 1-5).

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Issue of Consideration

Whether the FIR and complaint under Sections 3 and 7 of the Essential Commodities Act, 1955, alleging illegal storage of paddy without license, should be quashed as there is no prima facie case against the petitioner.

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Final Decision

The petition is allowed. The complaint and FIR in Crime No.1/2019 of Tadas Police Station are quashed.

Law Points

  • Essential Commodities Act
  • 1955
  • Sections 3 and 7
  • Quashing of FIR
  • Prima Facie Case
  • Abuse of Process of Court
  • Writ Jurisdiction under Articles 226 and 227
  • Section 482 Cr.P.C.
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Case Details

2019 LawText (KAR) (02) 40

Writ Petition No.105358/2019 (GM-RES)

2019-02-25

H.P. Sandesh

V.M. Sheelavant (for petitioner), Anthony R Rodrigues (AGA for R1), L.S. Sullad (for R2 to R4), M.B. Hiremath (for R5)

Lalit Kumar Jain

The State of Karnataka, H.N. Anjaneya, R.F Desai, Shri Shivanand, Sri. Mantesh Patil

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Nature of Litigation

Writ petition under Articles 226 and 227 of the Constitution of India read with Section 482 Cr.P.C. seeking quashing of FIR and complaint.

Remedy Sought

Petitioner sought a writ of certiorari or any other appropriate writ, order or direction to quash the complaint and FIR registered in Tadas Police Station Crime No.1/2019.

Filing Reason

Petitioner was aggrieved by the registration of FIR alleging offences under Sections 3 and 7 of the Essential Commodities Act, 1955 for illegal storage of paddy without license.

Issues

Whether the FIR and complaint under Sections 3 and 7 of the Essential Commodities Act, 1955, alleging illegal storage of paddy without license, should be quashed as there is no prima facie case against the petitioner.

Submissions/Arguments

Petitioner's counsel argued that the petitioner is a trader and not a miller, and there is no requirement for a license for mere storage of paddy under the Essential Commodities Act. The allegations do not make out a prima facie case.

Ratio Decidendi

The allegations in the complaint do not make out a prima facie case against the petitioner as the petitioner is a trader and not a miller, and there is no requirement for a license for mere storage of paddy under the Essential Commodities Act, 1955. Continuing the proceedings would be an abuse of the process of court.

Judgment Excerpts

Heard the petitioner's counsel, learned AGA for respondent No.1, learned counsel appearing for respondent Nos.2 to 4 and also learned counsel for respondent No.5. The petitioner by filing this writ petition under Articles 226 and 227 of the Constitution of India read with Section 482 of Cr.P.C. sought for an order to issue a writ in the nature of certiorari or any other appropriate writ, order or direction to quash the complaint and FIR registered in Tadas Police Station Crime No.1/2019 registered for the offences punishable under Sections 3 and 7 of the Essential Commodities Act, 1955 produced at Annexures-B and C respectively etc.

Procedural History

The petitioner filed a writ petition under Articles 226 and 227 of the Constitution of India read with Section 482 Cr.P.C. seeking quashing of the complaint and FIR in Crime No.1/2019 of Tadas Police Station. The petition came up for preliminary hearing before the High Court of Karnataka, Dharwad Bench, and was disposed of on 25th February 2019.

Acts & Sections

  • Essential Commodities Act, 1955: 3, 7
  • Code of Criminal Procedure, 1973: 482
  • Constitution of India: 226, 227
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