High Court of Karnataka Quashes Criminal Proceedings Against Directors and Managing Directors in Legal Metrology Cases for Lack of Sanction and Non-Compliance with Pre-Trial Procedures. The court held that taking cognizance without prior sanction under Section 72 of the Legal Metrology Act, 2009 and without examining the complainant under Section 200 CrPC renders the proceedings illegal and liable to be quashed.

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

The judgment pertains to multiple criminal petitions filed under Section 482 of the Code of Criminal Procedure, 1973, by directors and managing directors of companies against whom criminal proceedings were initiated under the Legal Metrology Act, 2009. The petitioners sought to quash the proceedings on the grounds that the Magistrate took cognizance without obtaining prior sanction under Section 72 of the Legal Metrology Act, and without examining the complainant on oath as required under Section 200 CrPC. The court analyzed the mandatory nature of the sanction requirement and the procedural defect in issuing process without examining the complainant. It also considered the lack of specific averments to establish vicarious liability of the directors under Section 49 of the Act. The court held that the proceedings were vitiated due to non-compliance with statutory requirements and quashed the same, allowing the petitions.

Headnote

A) Criminal Procedure - Cognizance of Offence - Sanction Requirement - Section 72 Legal Metrology Act, 2009 - Section 200 Code of Criminal Procedure, 1973 - The court held that taking cognizance of an offence under the Legal Metrology Act without prior sanction from the competent authority is illegal and vitiates the proceedings. Additionally, the Magistrate failed to examine the complainant on oath as required under Section 200 CrPC before issuing process. Held that both defects are fatal and the proceedings are liable to be quashed. (Paras 10-15)

B) Criminal Procedure - Vicarious Liability of Directors - Section 49 Legal Metrology Act, 2009 - The court held that for directors or managing directors to be held vicariously liable, there must be specific averments in the complaint that the offence was committed with their consent, connivance, or attributable to their neglect. In the absence of such averments, the proceedings against them are an abuse of process. (Paras 16-20)

C) Criminal Procedure - Quashing of Proceedings - Inherent Powers - Section 482 Code of Criminal Procedure, 1973 - The court exercised its inherent powers to quash the criminal proceedings against the petitioners as the continuation of the proceedings would be an abuse of the process of court due to lack of sanction and non-compliance with mandatory procedural requirements. (Paras 21-25)

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Issue of Consideration

Whether criminal proceedings initiated under the Legal Metrology Act, 2009 against directors and managing directors can be sustained without prior sanction under Section 72 of the Act and without compliance with Section 200 of the Code of Criminal Procedure, 1973.

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Final Decision

The court allowed the petitions and quashed the criminal proceedings against the petitioners in all connected cases.

Law Points

  • Sanction under Section 72 of the Legal Metrology Act
  • 2009 is mandatory before taking cognizance
  • Non-compliance with Section 200 CrPC vitiates proceedings
  • Vicarious liability requires specific averments of consent or connivance
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Case Details

2018 LawText (KAR) (07) 38

Criminal Petition No.8106/2013 and connected petitions

2018-07-10

K.N. Phaneendra

Sri Nataraj.R, Sri S.Rachaiah, Sri Sandesh J. Chouta

Mr. Leo Crasta, Mrs. Sylvia Crasta, Sri Viney Singh

State of Karnataka, Inspector of Legal Metrology

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Nature of Litigation

Criminal petitions under Section 482 CrPC seeking quashing of proceedings under the Legal Metrology Act, 2009.

Remedy Sought

Petitioners sought to set aside the order issuing process and quash the criminal proceedings against them.

Filing Reason

The Magistrate took cognizance without prior sanction under Section 72 of the Legal Metrology Act and without examining the complainant under Section 200 CrPC.

Previous Decisions

The Magistrate had issued process in various C.C. numbers, which the petitioners challenged.

Issues

Whether the Magistrate could take cognizance of an offence under the Legal Metrology Act, 2009 without prior sanction under Section 72 of the Act? Whether the proceedings are vitiated for non-compliance with Section 200 CrPC? Whether the directors can be held vicariously liable without specific averments?

Submissions/Arguments

Petitioners argued that the Magistrate took cognizance without sanction and without examining the complainant, violating mandatory provisions. Respondents argued that the proceedings were valid and the petitioners could face trial.

Ratio Decidendi

Taking cognizance of an offence under the Legal Metrology Act, 2009 without prior sanction under Section 72 of the Act is illegal. Additionally, non-compliance with Section 200 CrPC by not examining the complainant on oath before issuing process vitiates the proceedings. Vicarious liability of directors requires specific averments of consent or connivance.

Judgment Excerpts

The Magistrate has taken cognizance of the offence without there being any sanction from the competent authority as required under Section 72 of the Legal Metrology Act, 2009. The Magistrate has not examined the complainant on oath as required under Section 200 of Cr.P.C. before issuing process. In the absence of any specific averments in the complaint, the directors cannot be held vicariously liable.

Procedural History

The Inspector of Legal Metrology filed complaints against the petitioners for offences under the Legal Metrology Act, 2009. The Magistrate took cognizance and issued process. The petitioners filed criminal petitions under Section 482 CrPC to quash the proceedings. The High Court heard all petitions together and delivered a common judgment.

Acts & Sections

  • Legal Metrology Act, 2009: 49, 72
  • Code of Criminal Procedure, 1973: 200, 482
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