{"id":238026,"date":"2020-10-27T10:00:01","date_gmt":"2020-10-27T04:30:01","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=238026"},"modified":"2020-10-30T10:44:12","modified_gmt":"2020-10-30T05:14:12","slug":"kar-hc-material-placed-on-record-sufficiently-prove-offences-under-ss-120-b-and-420-ipc-and-no-infirmity-warranting-interference-under-art-226-noted-petition-dismissed","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/10\/27\/kar-hc-material-placed-on-record-sufficiently-prove-offences-under-ss-120-b-and-420-ipc-and-no-infirmity-warranting-interference-under-art-226-noted-petition-dismissed\/","title":{"rendered":"Kar HC | Material placed on record sufficiently prove offences under Ss. 120-B and 420 IPC and no infirmity warranting interference under Art. 226 noted; Petition dismissed"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Karnataka High Court: <\/strong>John Michael Cunha J., while rejecting the present petition, recorded no error or infirmity in the challenged order warranting interference under Articles 226 and 227 of the Constitution of India.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\"><strong>\u00a0<\/strong><strong>Brief Facts<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">The Petitioner in the present case has filed this writ petition under Articles 226 and 227 of the Constitution of India, seeking to quash proceedings registered for the offences punishable under Section 120B read with Sections 409 and 420 of the Indian Penal Code, 1860, and Section 13(2) read with Section 13(1)(c) and (d) of the Prevention of Corruption Act, 1988. It is pleaded by the petitioner that, he is sought to be prosecuted for the alleged offences in his individual capacity whereas the material produced by the Investigating Agency on the face of it reveals that the entire transaction was entered into by the firm of which the petitioner was a nominal partner.<strong>\u00a0\u00a0<\/strong><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\"><strong>Issue<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Whether the charges framed against the petitioner are valid and sustainable in the eyes of law?<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\"><strong>Observation<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">The Court, pursuant to its decision, cited relevant cases and made the following observations;<\/p>\n<p style=\"text-align: justify;\"><strong><em>Sham Sunder v. State of Haryana,<\/em><\/strong> <a href=\"http:\/\/www.scconline.com\/DocumentLink\/I7Fe1oAF\">(1989) 4 SCC 630<\/a>, \u201c(\u2026)<em>The essential characteristic of a firm is that each partner is a representative of other partners. Each of the partners is an agent as well as a principal.\u00a0 He is\u00a0 an agent insofar as he can bind the other partners by his acts within the scope of the partnership agreement. He is a principal to the extent that he\u00a0 is bound by acts of other partners. In fact, every partner is liable for an act of the firm. Section 2(a) of the Partnership Act defines as \u201cact of a firm\u201d to mean any act or omission by all the partners, or by any partner or agent of the firm which gives rise to a right enforceable by or against the firm.\u201d<\/em><\/p>\n<p style=\"text-align: justify;\"><strong><em>Standard Chartered Bank v. Directorate of Enforcement,<\/em><\/strong> <a href=\"http:\/\/www.scconline.com\/DocumentLink\/35MpzSwE\">(2005) 4 SCC 530<\/a>, <em>\u201c(\u2026) The corporate bodies, such as a firm or company undertake a series of activities that affect the life, liberty and property of the citizens. Large-scale financial irregularities are done by various corporations. The corporate vehicle now occupies such a large portion of the industrial, commercial and sociological sectors that amenability of the corporation to a criminal law is essential to have a peaceful society with stable economy.\u201d<\/em><\/p>\n<p style=\"text-align: justify;\"><strong><em>Sunil Bharti Mittal v. CBI,<\/em><\/strong> <a href=\"http:\/\/www.scconline.com\/DocumentLink\/6zI9hEXY\">(2015) 4 SCC 609<\/a><em>, <\/em><\/p>\n<p style=\"text-align: justify;\"><em>\u201cThe Penal Code, 1860 save and except in some matters does not contemplate any vicarious liability on the part of a person. Commission of an offence by raising a legal fiction or by creating a vicarious liability in terms of the provisions of a statute must be expressly stated. The Managing Director or the Directors of the Company, thus, cannot be said to have committed an offence only because they are holders of offices. The learned Additional Chief Metropolitan Magistrate, therefore, in our opinion, was not correct in issuing summons without taking into consideration this aspect of the matter. The Managing Director and the Directors of the Company should not have been summoned only because some allegations were made against the Company.\u201d<\/em><\/p>\n<p style=\"text-align: justify;\">The Court further observed that, <em>\u201cThe argument of learned counsel for petitioner that the contract entered into between Sri Lakshmi Venkateshwara Minerals (accused 2), of which petitioner is one of the partners, and Shree Mallikarjuna Shipping Pvt. Ltd., (accused 4) (Annexure- \u2018H\u2019) was concluded much before the seizure of the property is totally misplaced\u201d<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\"><strong>Decision<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">While dismissing the present petition, the Court said, <em>\u201c<\/em><em>the allegations made in the charge sheet clearly go to show that in addition to the Firm, petitioner 1 is implicated in the alleged offences in his individual capacity as is evident from the allegations found in the charge sheet.\u201d <\/em>[K. Mahesh Kumar v. State of Karnataka,\u00a0 <a href=\"http:\/\/www.scconline.com\/DocumentLink\/9sda6HL5\"><b>2020 SCC OnLine Kar 1637<\/b><\/a>, decided on 16-10-2020]<\/p>\n<hr \/>\n<p><span style=\"color: #008000;\">Sakshi Shukla, Editorial Assistant has put this story together<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Karnataka High Court: John Michael Cunha J., while rejecting the present petition, recorded no error or infirmity in the challenged order warranting <\/p>\n","protected":false},"author":67011,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[35361,42853,32985,29785,43899,14071],"class_list":["post-238026","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-highcourts","tag-article-226-and-227-of-constitution-of-india","tag-firm","tag-investigating-agency","tag-law","tag-nominal-partner","tag-prevention-of-corruption-act"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Kar HC | Material placed on record sufficiently prove offences under Ss. 120-B and 420 IPC and no infirmity warranting interference under Art. 226 noted; 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Facts of the case were that an application was filed by the petitioner before the Trial Court seeking interim relief. An ex parte interim\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":246694,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/04\/08\/explained-what-happens-to-a-petition-filed-under-wrong-nomenclature\/","url_meta":{"origin":238026,"position":1},"title":"Explained: What happens to a petition filed under wrong nomenclature?","author":"Prachi Bhardwaj","date":"April 8, 2021","format":false,"excerpt":"Supreme Court: \u00a0The 3-judge bench of Ashok Bhushan, SA Nazeer and Hemant Gupta*, JJ has reiterated that the nomenclature under which the petition is filed is not quite relevant and it does not debar the Court from exercising its jurisdiction which otherwise it possesses. The Court hearing a where a\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-2-7.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-2-7.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-2-7.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-2-7.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-2-7.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":243840,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/02\/13\/hp-hc-whether-a-dispute-relating-to-an-election-of-a-local-body-maintainable-before-high-court-under-art-226-of-constitution-of-india-hc-explains-in-light-of-settled-position-of-law\/","url_meta":{"origin":238026,"position":2},"title":"HP HC | Whether a dispute relating to an election of a local body maintainable before High Court under Art. 226 of Constitution of India? HC explains in light of settled position of law","author":"Editor","date":"February 13, 2021","format":false,"excerpt":"Himachal Pradesh High Court: Jyotsna Rewal Dua J., dismissed the petition being non-maintainable. The petitioner by way of this instant petition has challenged the election of Respondent 5 as Member, Block Development Committee, Misserwala, District Sirmour in the elections to Panchayati Raj Institutions of the State concluded in January 2021.\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":214591,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/05\/13\/pat-hc-writ-petitions-under-arts-226-227-or-tax-references-filed-in-hindi-to-be-accompanied-by-an-authentic-english-version-of-the-same\/","url_meta":{"origin":238026,"position":3},"title":"Pat HC | Writ Petitions under Arts. 226 &#038; 227 or Tax References filed in Hindi to be accompanied by an authentic English version of the same","author":"Bhumika Indulia","date":"May 13, 2019","format":false,"excerpt":"\u201cViewing Hindi or English as the only language does not seem to be the Constitutional mandate and it is with this end in view that our Constitution framers chiselled and shaped Article 348 of the Constitution of India.\u201d Patna High Court: The Three-Judge Bench of Amreshwar Pratap Sahi, CJ., Ashutosh\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":251027,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/07\/09\/lok-adalat-award\/","url_meta":{"origin":238026,"position":4},"title":"Sikk HC | Can Award of the Lok Adalat be assailed by way of a petition under Arts. 226 and\/or 227 of Constitution? Court answers","author":"Editor","date":"July 9, 2021","format":false,"excerpt":"Sikkim High Court: Jitendra Kumar Maheshwari, CJ. allowed a writ petition which was filed assailing the updated Award passed by the Lok Adalat though signed on 26-06-2015. The facts were that petitioner 1 was the wife of Defendant 1 in the suit and petitioners 2 and 3 were his sons.\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":203082,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/10\/04\/petition-under-article-226-or-227-challenging-interlocutory-order-passed-in-arbitration-proceedings-not-to-be-entertained\/","url_meta":{"origin":238026,"position":5},"title":"Petition under Article 226 or 227 challenging interlocutory order passed in arbitration proceedings not to be entertained","author":"Bhumika Indulia","date":"October 4, 2018","format":false,"excerpt":"Bombay High Court: A Division Bench comprising of B.R. Gavai and M.S. Karnik, JJ. dismissed a petition filed against the order of the Arbitrator whereby petitioner\u2019s application challenging the arbitration proceedings was rejected. In view of the agreement between the parties, arbitration proceedings were commenced with one R.S. Bhandurge as\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/238026","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67011"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=238026"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/238026\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=238026"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=238026"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=238026"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}