High Court Quashes Criminal Proceedings Against Company Secretary in KOPD Act Case Due to Lack of Proper Accusation Against Company. The court found that the prosecution against an employee without arraigning the company is not maintainable under Section 6 of the KOPD Act.

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

The judgment involved two criminal petitions filed under Section 482 of the Code of Criminal Procedure, 1973, seeking to quash criminal proceedings initiated against the petitioners under the Karnataka Open Places (Prevention of Disfigurement) Act, 1981. The petitioners included M.S. Reddy, Vice President (Finance) and Company Secretary of M/s. Le Meridian, Bengaluru, and the company itself, M/s. Mac Charles (I) Ltd. The dispute arose from demand notices issued by the Assistant Revenue Officer for hoarding taxes, which the petitioners contested in a writ petition. Despite an interim stay on the demand notices, the respondents continued to pressurize the petitioners to remove the hoarding, leading to the registration of a criminal complaint. The petitioners argued that the initiation of criminal proceedings was an abuse of process, as the hoarding was on private property and did not constitute disfigurement under the KOPD Act. The court analyzed the provisions of the KOPD Act, particularly Sections 3 and 6, which stipulate that a company must be made a party to any proceedings for offences committed under the Act. The court found that the complaint did not adequately establish the case against the petitioners, as the company was not charged, and thus quashed the proceedings. The court emphasized that the prosecution of an employee without including the company as an accused was not maintainable, leading to the conclusion that the criminal proceedings were an abuse of process.

Headnote

A) Criminal Procedure - Quashing of Proceedings - Lack of Accusation Against Company - Section 482 of Code of Criminal Procedure, 1973 - The court quashed the criminal proceedings against the petitioners as the company was not made a party to the proceedings, which is a requirement under Section 6 of the KOPD Act. The court held that the prosecution against an employee without arraigning the company is not maintainable (Paras 25).

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Issue of Consideration

Whether the criminal proceedings initiated against the petitioners under the Karnataka Open Places (Prevention of Disfigurement) Act, 1981 were maintainable.

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Final Decision

The court allowed both criminal petitions and quashed the proceedings initiated against the petitioners in C.C.No.32777/2018, including the charge sheet dated 13.12.2018, complaint, and FIR dated 01.10.2018, registered by the High Grounds Police Station, in Crime No.138/2018 for the offence under Section 3 of KOPD Act.

Law Points

  • Quashing of proceedings
  • Abuse of process
  • Company liability
  • Criminal procedure
  • KOPD Act interpretation
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Case Details

2026 LawText (KAR) (09) 23

CRL.P No. 2208 of 2019 C/W CRL.P No. 7959 of 2018

2026-09-19

H.P. Sandesh

Sri. Satyanand B.S., Sri. M. Divakar Maddur, Sri. Aravind M. Neglur

M.S. Reddy, M/s. Le Meridian

State of Karnataka, Mr. Seetharam

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Nature of Litigation

Criminal petitions seeking to quash proceedings under KOPD Act.

Remedy Sought

Quashing of criminal proceedings initiated against the petitioners.

Filing Reason

Allegation of unauthorized disfigurement by advertisement.

Previous Decisions

Interim stay granted on demand notices related to hoarding taxes.

Issues

Whether the criminal proceedings were maintainable without the company being made a party. Whether the actions of the respondents constituted an abuse of process.

Submissions/Arguments

Petitioners argued that the initiation of criminal proceedings was an abuse of process and that the company should have been made a party. Respondents contended that the complaint was valid as the hoarding was in violation of KOPD Act.

Ratio Decidendi

The prosecution against an employee without including the company as an accused is not maintainable under Section 6 of the KOPD Act.

Judgment Excerpts

The very initiation of criminal proceedings against the petitioner by respondent No.2 is false, frivolous and illegally acted upon in registering the criminal case. The court emphasized that the prosecution against an employee without including the company as an accused is not maintainable.

Procedural History

The petitions were filed to quash criminal proceedings initiated against the petitioners under the KOPD Act, following demand notices and a writ petition challenging those notices.

Acts & Sections

  • Code of Criminal Procedure, 1973: 482
  • Karnataka Open Places (Prevention of Disfigurement) Act, 1981: 3, 6
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