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Karnataka High Court

Binod Kumar Choudary vs State Of Karnataka on 21 February, 2025

Author: H.P.Sandesh

Bench: H.P.Sandesh

                            1



       IN THE HIGH COURT OF KARNATAKA AT BENGALURU

         DATED THIS THE 21ST DAY OF FEBRUARY, 2025

                          BEFORE

           THE HON'BLE MR. JUSTICE H.P. SANDESH

         CRIMINAL REVISION PETITION NO.1518/2023

BETWEEN:

1.     BINOD KUMAR CHOUDARY,
       S/O LATE MAHAVEER PRASAD CHOUDARY,
       AGED ABOUT 59 YEARS,
       DIRECTOR, GIMPEX HOUSE,
       NO.282 (OLD NO.181),
       LINGICHETTI ROAD,
       CHENNAI - 600 001.

2.     T.R. SESHADRI,
       S/O T.S. RAMASWAMY,
       AGED ABOUT 55 YEARS,
       DEPUTY GENERAL MANAGER,
       CIMPEX HOUSE,
       NO.282 (OLD NO.181),
       LINGICHETTI ROAD,
       CHENNAI - 600 001.                   ... PETITIONERS

       (BY SRI. MURTHY D. NAIK, SENIOR COUNSEL FOR
      SRI. MAHENDRA G., ADVOCATE PETITIONER NO.1;
 SRI. SUMANTH M. HEGDE, ADVOCATE FOR PETITIONER NO.2)

AND:

STATE OF KARNATAKA
REPRESENTED BY KARNATAKA LOKAYUKTA POLICE,
CITY DIVISION,
BENGALURU-01.                          ... RESPONDENT

           (BY SRI. B.S.PRASAD, SPECIAL COUNSEL)
                                     2



     THIS CRIMINAL REVISION PETITION IS FILED UNDER
SECTION 397 R/W 401 OF CR.P.C PRAYING TO ALLOW THE
ABOVE CRIMINAL REVISION PETITION AND DISCHARGE THE
PETITIONERS IN SPL.C.C.NO.41/2016 FOR THE ALLEGED
OFFENCES PUNISHABLE UNDER SECTIONS 379, 409 AND 420
R/W 120B OF IPC, 1860 AND SECTIONS 21 AND 23 R/W 4(1)
AND 4(1A) OF MMDR ACT, 1957 AND RULE 165 R/W 144 OF
KARNATAKA FOREST RULE, 1969.

    THIS CRIMINAL REVISION PETITION HAVING BEEN HEARD
AND RESERVED FOR ORDERS ON 06.02.2025, THIS DAY, THE
COURT PRONOUNCED THE FOLLOWING:

CORAM:     HON'BLE MR. JUSTICE H.P.SANDESH

                              CAV ORDER

     This revision petition is filed by accused Nos.2 and 3

against   the    rejection   of   discharge   application   passed   in

Spl.C.C.No.41/2016 dated 02.03.2023.


     2.      The factual matrix of the case of the prosecution is

that in pursuance to the order passed by the Apex Court on

I.A.No.189      filed   in   W.P.No.562/2009     vide   order   dated

16.09.2013 with regard to illegal mining and export of iron ore

from Belikere Port from 01.01.2009 to 31.05.2010 by various

companies, the CBI on investigation had filed a preliminary

enquiry report based on which the Apex Court had directed in its

order dated 16.09.2013 that any iron ore which was exported

from Belikere Port area by any company within the check period
                                    3



of 01.01.2009 to 31.05.2010 in which if the export is less than

50,000 metric ton by any company/persons as against which an

enquiry to be conducted by the CBI who in turn had directed the

Karnataka   State    Government        to   conduct    an   enquiry    and

permitted the CBI to register criminal case against those

exporters who were enquired into the preliminary enquiry and

who had exported iron ore of more than 50,000/- MT without

valid permits and as recommended by the Central Empowered

Committee in its report dated 05.09.2012 and certain directions

were given.      As per the order of the Apex Court, the State

Government vide order dated 22.11.2013 bearing No.CI/282/

MM011(P) had directed the complainant/respondent herein to

conduct an enquiry and vide order dated 24.01.2014 bearing

No.CRCE     10    Soloyu   2014,       Bengaluru      had   directed   for

establishing a Special Investigation Team (SIT) and vide order

dated 29.05.2014 bearing No.HD/129/POP/2014 had directed

the SIT to be constructed as a police station.


      3.    It was alleged against these petitioners that they had

conducted trading of iron ore between the check period of

01.01.2009 and 31.02.2010 from Bellary and Chitradurga

District and was exported through Belikere port to an extent of
                                4



1,04,070 metric ton was exported and out of which 21,585.210

metric tons of iron ore was dispatched without obtaining Mineral

Dispatch permit from the Forest Department or the Department

of Mines and Geology.   Hence, the petitioners were arrayed as

accused since the export of iron ore without obtaining mineral

dispatch permit had caused loss to the State exchequer.     It is

also alleged that the petitioners had involved with the officials

and by conducting theft of iron ore had caused loss to the State

exchequer. Based on the same, a crime was registered in Crime

No.5/2014 dated 11.07.2014 and investigation was completed

and charge-sheet was filed for the offences punishable under

Sections 379, 409, 420 read with Section 120B of IPC and

Sections 21 and 23 read with 4(1) and 4(1)(a) of the Mines and

Minerals (Development and Regulation) Act, 1957 ('MMDR Act'

for short) and Rule 165 read with 144 of the Karnataka Forest

Rules, 1969. It is also contended that the primary allegation as

against the petitioners is that the company had purchased iron

ore and the said purchase was done without the permit from the

Department of Mines and Geology and caused loss to the State

exchequer.   Hence, charge-sheet was filed and an application
                                   5



was filed before the Trial Court for discharge and the same was

rejected.


      4.        Being aggrieved by the said order, the present

revision petition is filed contending that the respondent is

alleging that the accused which is a company is vicariously liable

for the offences committed by its Director, which is incorrect and

holding the petitioners responsible for the alleged offences, who

was challenged before the Trial Court by way of discharge

application. It is contended that the petitioners are not a lease

holder     or   mine   owners   and   have   not   even   involved   in

transporting of the mineral, but have only traded with the

mineral. The charge-sheet does not indicate committing of any

such offence.      The very definition of theft would indicate that

with an intention of dishonestly moving out or taking possession

of a movable property without another person's consent would

amount to theft. The learned counsel brought to the notice of

this Court the ingredients of Section 409 of IPC with regard to

the criminal breach of trust and also Section 405 of IPC.        It is

contended that none of the ingredients attracts against the

petitioners. The petitioners are only traders who had traded in

the minerals which originated from a mine head and was
                                 6



extracted from the mine head with a valid lease. The learned

counsel contend that the offences under Section 420 of IPC not

attracts against the petitioners. The ingredients of the offence of

cheating is also not forthcoming. It is contended that the

allegation as against the petitioners is that the ore was illegally

transported without payment of royalty.          The question of

payment of royalty would arise at the time when a mineral

dispatch permit is sought for, processed and issued. The learned

counsel contend that in order to invoke Section 120B of IPC,

there must be criminal conspiracy to commit the offence and the

ingredients of Section 120B of IPC does not attract against the

petitioners. It is contended that the offences invoked under the

MMDR Act also does not attract against the petitioners. It is

contended that the charge-sheet had indicated that it was M/s.

Shalini Impex, which had sold the mineral to this accused and

the said mineral was transported by RY Logistics from the

stockyard of M/s. Shanthalakshmi Jayaram storage premises to

Belikere Port.   If the provisions of the MMDR Act which are

attributed to the petitioners is seen, the said provisions of law

can be attributed only as against accused No.4 i.e., M/s.

Shanthalakshmi Jayaram, since the allegation by the respondent
                                  7



is that it was accused No.4 who transported the mineral.         The

Trial Court fails to take note of this fact into consideration while

rejecting the application and failed to consider the entire

material placed by the prosecution against the petitioners to

frame the charges at the behest of the prosecution and hence

prayed this Court to set aside the impugned order.


      5.    The   learned   counsel   for   the   petitioners   would

contend that these petitioners are the Director and the Deputy

General Manager and they are in no way connected to the day-

to-day affairs of the company. The learned counsel contend that

the offences under the MMDR Act was invoked and cannot file

charge-sheet, since there is a clear bar under Section 22 of the

MMDR Act.    The very approach of the Trial Court is erroneous

and even framing of points for consideration is erroneous. The

Trial Court while passing the order in one breath says Managing

Director, but the reasons are contrary and not Managing

Director. In support of his arguments the learned counsel would

contend that no vicarious liability can be invoked in criminal law

in case of company.
                                     8



      6.      The learned counsel for the petitioner in support of

his arguments relied upon the judgment of the Apex Court in the

case of SANJAY DUTT AND OTHERS v. STATE OF HARYANA

AND ANOTHER reported in 2025 SCC ONLINE SC 32 and

brought to the notice of this Court paragraph Nos.11 to 13,

wherein discussion was made with regard to vicarious liability.

There must exist something to show that such actions of the

director stemmed from their personal involvement and arose

from actions or conduct falling outside the scope of its routine

corporate duties.        Thus, where the company is the offender,

vicarious    liability   of   the   Directors   cannot   be   imputed

automatically, in the absence of any statutory provision to this

effect.    The learned counsel also brought to the notice of this

Court paragraph No.13, wherein discussion was made with

regard to the cardinal principle of criminal jurisprudence that

there is no vicarious liability unless the statute specifically

provides so.      Thus, an individual who has perpetrated the

commission of an offence on behalf of a company can be made

an accused, if the statute provides for such liability and if there

is sufficient evidence of his active role coupled with criminal

intent.
                                  9



      7.     The learned counsel also relied upon the judgment of

the Apex Court in the case of SUNIL BHARTI MITTAL v.

CENTRAL BUREAU OF INVESTIGATION reported in (2015) 4

SCC 609 and brought to the notice of this Court paragraph

Nos.42 to 44, wherein discussion was made with regard to the

circumstances when Director/person in charge of the affairs of

the company can also be prosecuted, when the company is an

accused person. The learned counsel also brought to the notice

of this Court the discussion made in paragraph No.45.1.


      8.     The learned counsel also relied upon the judgment of

the Apex Court in the case of RAVINDRANATHA BAJPE v.

MANGALORE SPECIAL ECONOMIC ZONE LIMITED AND

OTHERS reported in (2022) 15 SCC 430 and brought to the

notice of this Court paragraph Nos.8.2, 8.3 and 9, wherein

discussion was made with regard to the summoning of an

accused in a criminal case is a serious matter. Merely because

they are Chairman, Managing Director and other office bearers,

without any specific role attributed and the role played by them

in their capacity, they cannot be arrayed as an accused, more

particularly they cannot be held vicariously liable for the offences

committed.
                                   10



     9.     The learned counsel also brought to the notice of this

Court the judgment of the Apex Court in the case of NARENDRA

KUMAR A. BALDOTA v. STATE OF KARNATAKA reported in

2022 SCC Online SC 1880 and brought to the notice of this

Court paragraph Nos.26 and 27, wherein discussion was made

with regard to arraying of the accused as Chairman and Deputy

General Manager and in the absence of specific allegations and

the specific role attributed to them, the learned Magistrate was

not justified in issuing process against them and discussion was

made in paragraph No.28 with regard to the judgment in the

case of STATE OF HARYANA v. BHAJAN LAL.


     10.    The learned counsel also brought to the notice of this

Court the judgment in the case of STANDARD CHARTERED

BANK AND OTHERS v. DIRECTORATE OF ENFORCEMENT

AND OTHERS reported in (2005) 4 SCC 530 and brought to

the notice of this Court paragraph Nos.30 to 32, wherein also

discussion was made with regard to as the company cannot be

sentenced   to    imprisonment,    the    Court   has   to   resort   to

punishment of imposition of fine which is also a prescribed

punishment.      As   the   company      cannot   be    sentenced     to

imprisonment, the Court cannot impose that punishment, but
                                  11



when imprisonment and fine is the prescribed punishment, the

Court can impose the punishment of fine which could be

enforced against the company. An observation is also made that

we do not think that there is a blanket immunity for any

company from any prosecution for serious offences merely

because the prosecution would ultimately entail a sentence of

mandatory imprisonment.


      11.    The learned counsel also relied upon the judgment of

the Apex Court in the case of KRISHNA LAL CHAWLA AND

OTHERS v. STATE OF UTTAR PRADESH AND ANOTHER

reported in (2021) 5 SCC 435 and brought to the notice of this

Court paragraph Nos.16, 17, 18 and 23, wherein also discussion

was made that the Trial Courts have the power to not merely

decide on acquittal or conviction of the accused person after the

trial, but also the duty to nip frivolous litigations in the bud even

before they reach the stage of trial by discharging the accused in

fit cases.


      12.    The learned counsel also relied upon the judgment of

the Apex Court in the case of RAM PRAKASH CHADHA v.

STATE OF UTTAR PRADESH reported in 2024 SCC Online SC
                                     12



1709 and brought to the notice of this Court paragraph No.22,

wherein discussion was made with regard to when an application

is filed for discharge under Section 227 of Cr.P.C, it is an

irrecusable duty and obligation of the Court to apply its mind and

answer to it regarding the existence of or otherwise, of ground

for   proceeding   against    the    accused,   by      confining   such

consideration based only on the record of the case and the

documents    submitted       therewith   and    after     hearing    the

submissions of the accused and the prosecution in that behalf.


      13.   The learned counsel referring these judgments would

contend that the Trial Court committed an error in not

considering the material on record as there was no such

material.


      14.   Per contra, the learned counsel for the respondent

would contend that accused No.4 had earlier approached this

Court on similar ground by filing a criminal petition and the same

was dismissed, so also accused No.5 approached the Court and

this Court dismissed the same. These petitioners have indulged

in trading of the mines without licence and specific allegations

are made against these petitioners since one is the Director for
                                  13



permanent and the Deputy General Manager accused No.3 is

also looking after the business of the company of trading of

mines. The learned counsel contend that Section 23 attracts

against both the petitioners. The learned counsel contend that

the Trial Court has given the reasons while rejecting the

application and also taken note of the material collected by the

Investigating Officer and dismissed the application and hence it

does not require interference.


      15.   The learned counsel in support of his arguments

would contend that whatever grounds which have been urged is

a matter of trial and these defences cannot be addressed at the

time of consideration of discharge application.         The learned

counsel brought to the notice of this Court the judgment of the

Apex Court in the case of PRADEEP S. WODEYAR v. STATE OF

KARNATAKA reported in (2021) 19 SCC 62, wherein the Apex

Court held that if failure of justice, then only the Court can

exercise the powers. The learned counsel brought to the notice

of this Court the vicarious liability of the Directors, if prima facie

case is found, it is sufficient to arraign him as an accused and

question whether he was responsible and he was in charge of

the affairs of the company during the commission of the alleged
                                     14



offence as required under Section 23(1) proviso of the MMDR Act

is a matter for trial. The Court has to take note of the combined

reading of Section 22 and 4 and these grounds cannot be urged

at the time of discharge application.              The learned counsel

contend that this Court already dismissed Crl.P.No.3212/2014

vide order dated 18.11.2020, wherein similar grounds were

urged before this Court and in elaborate discussed the same.


      16.    In reply to the arguments of the learned counsel for

the respondent, the learned counsel for the petitioners would

contend that not stated anything about petitioner No.2 and he

was   not    the   Managing      Director   and    unnecessarily   he   is

prosecuted by filing a false case.


      17.    Having heard the learned counsel for the petitioners

and the learned counsel for the respondent, the points that arise

for the consideration of this Court are:

      (i)    Whether the Trial Court committed an error in
             dismissing    the     discharge      application   and
             whether it requires interference of this Court?

      (ii)   What order?
                                15



Point No.(i):

      18.   Having considered the grounds urged in the petition

as well as the oral submission of the respective learned counsel,

the Court has to take note of the accusations made against

these petitioners.   It has to be noted that accused No.1 is the

Company M./s. Gimpex Limited. No doubt, it is shown that the

company is represented by its Managing Director and these

petitioners are accused Nos.2 and 3 i.e., Director and Deputy

General Manager of the very same Company. It is important to

note that the allegations made against them in the charge-sheet

is that they have transported 9090.200 MT of iron ore without

mineral dispatch permit and hence they are liable to pay

Rs.1,35,61,106/- to the Government.     As per the charge-sheet

allegations, out of 12 transportations, 7 are in order and

remaining 4 are not forthcoming.     The offences alleged in the

charge-sheet are under Sections 379, 409, 415 and 120B of IPC

and also under MMDR Act. An application is filed for discharge

on the ground that these petitioners have not played any role.

The said application is resisted by the respondent contending

that accused Nos.1 to 3 in criminal conspiracy with accused

Nos.6, 7 and 15, without obtaining the valid permit and payment
                                 16



of royalty and other charges transported the iron ore in the

particular period. It is the contention of the petitioners that they

have not committed any such offence and the prosecution has

not considered the accused are only purchasers of the mineral

from the lease holders and when transporting the same from

mine head to the port, the lease holders have paid the royalty to

the iron ore and hence the charges cannot be attributed against

the accused.     But the prosecution mainly relies upon the

statement of witnesses C.Ws.29 and 30 and also statement

recorded under Section 164 of Cr.P.C. so also statement of

witnesses C.Ws.36, 37 and 38 and specific allegations are made

that accused No.7 purchased the iron ore and accused Nos.8 to

10 have transported the same from Belikere port and sold to

accused Nos.1 to 3 and caused loss to the State exchequer.


      19.   The Trial Court while considering the allegations

against these petitioners, no doubt, formulated the points for

consideration together since accused Nos.1 to 5, 7, 10, 11 to 14

have filed similar application for discharge.    It is important to

note that though common order was passed, the Trial Court in

paragraph Nos.7(a) and 15(a) taken note of that the documents

collected during the investigation prima facie show that accused
                                 17



No.1 company has exported 11,290 MT of iron ore, but it had no

mining licence. According to the prosecution case, the company

had purchased 4,124 MT or iron ore from M/s. Shalini Impex,

transported from Kallahalli mining yard and the said stock was

illegally mined, stored and transported. The company had

purchased 3,426 MT of iron ore from accused No.7 - M/s.

Mahesh Babu Nayaka and the said iron ore was illegally stored

and transported and 1,539 MT from M/s Chunduru Associates.

M/s. Chunduru Associates had purchased the said iron ore from

the accused No.11 M/s. Sai Krishna Mineral Pvt. Ltd.


      20.   It is important to note that the Trial Court culled out

the allegation made against the company in paragraph No.7(a)

that M/s. Gimpex Ltd., Chennai during the period 01.01.2009 to

31.05.2010 had transported iron ore from Bellary, Chitradurga

and other places to Belikere port and exported the same. It is

important to note that the Trial Court also taken note of the

statement of the witnesses, particularly C.Ws.3, 5, 6, 7 and 9.

It is important to note that specific allegations are made that the

accused not obtained any licence and permit from the concerned

Department and in violation of law they had transported iron ore

to Belikere port and caused loss of Crores of rupees to the State
                                 18



exchequer.    It is important to note that a specific allegation is

made that they conspired with each other and conspired to

illegally, extract, store, transport and export 9090 MT of iron ore

without     obtaining   the   permission   from   the   concerned

Department.


      21.    It is observed in paragraph No.18 that accused Nos.1

to 3 being the traders have contended that they are not involved

in purchase and sale of iron ore and therefore, they were not

required to obtain permit or to pay royalty to the Government.

The earlier order passed in Crl.P.No.572/2017 dated 19.11.2020

was taken note, wherein this Court has observed that the

allegations made against the accused squarely attracts Section

4(1-A) of MMDR Act.      It is observed in paragraph No.22 that

criminal conspiracy is always hatched in secrecy and it is not

possible to place direct evidence of the common intention of the

accused.     Therefore, conspiracy can be inferred from the

circumstances and it is a matter of trial. In the case on hand,

accused No.1 being the company and accused Nos.2 and 3 being

the Director and Deputy General Manager had exported the iron

ore and specific allegation are made in the charge-sheet against

these two petitioners. The fact that accused No.2 is the Director
                                  19



and accused No.3 is the Deputy General Manager is not in

dispute. A specific allegation is made against them that they are

in the helm of affairs of transporting the same and exporting the

iron ore.     When such specific material is collected against the

petitioners, it is rightly pointed out by the learned counsel for

the respondent that it is a matter of trial.


      22.     It is important to note that the Apex Court in the

judgment in the case of Pradeep S. Wodeyar (supra), held that

whether accused No.1 was in charge of and responsible for the

affairs of the company during the commission of the alleged

offence as required under Section 23(1) proviso of MMDR Act is

a matter for trial.     It is important to note that the learned

counsel for the petitioners relied upon several judgments,

wherein also discussion was made with regard to the principles

laid down with regard to the vicarious liability is concerned. The

allegation against these petitioners is not with regard to the

vicarious liability is concerned, as contended by the learned

counsel for the respondent. The Apex Court in the judgment in

the   cases     of   Sanjay   Dutt,   Sunil    Bharti   Mittal   and

Ravindranatha Bajpe (supra), has discussed whether they

have played active role in the said act.       In the absence of no
                                     20



such role, they cannot be prosecuted and also an observation is

made that facing of criminal trial is a serious issue.               It is

important to note that in the case of Krishna Lal Chawla

(supra), the Apex Court held that the Trial Courts have the

power to not merely decide on acquittal or conviction of the

accused person after the trial, but also the duty to nip frivolous

litigations in the bud even before they reach the stage of trial by

discharging the accused in fit cases.


      23.     The principles laid down in this judgments referred

supra is not in dispute.        If no such material before the Court,

then the Court can discharge and only at the time of discharging

the accused, the Court has to look into the material collected by

the Investigating Officer during the course of investigation.

Specific    allegations   and    charges   are    made     against   these

petitioners that accused No.2 is the permanent Director of the

company and accused No.3 is the Deputy General Manager.

Specific    statements    are    also   made     against   them   by the

witnesses, which have been relied upon. In the judgment in the

case of Ram Prakash Chadha (supra), the Apex Court in

paragraph No.22 discussed with regard to when an application is

filed for discharge under Section 227 of Cr.P.C, it is an
                                     21



irrecusable duty and obligation of the Court to apply its mind and

answer to it regarding the existence of or otherwise, of ground

for   proceeding   against    the    accused,   by      confining   such

consideration based only on the record of the case and the

documents    submitted       therewith   and    after     hearing    the

submissions of the accused and the prosecution in that behalf.

There is no dispute with regard to this principle and while

considering the discharge application, the defence cannot be

considered and only material collected by the Investigating

Officer to be taken note of.         In the case on hand, specific

allegations are made against these two petitioners that both of

them are in helm of affairs of the company and have actively

involved in trading of iron ore without any permit or licence.

When such allegations are made, the principles laid down in the

judgments referred supra by the learned counsel for the

petitioners are not applicable to the facts of the case on hand. It

is settled law that there cannot be vicarious liability if company

is an accused and the same also to be considered at the time of

trial and not at the stage of discharge application. It is not in

dispute that earlier other accused approached this Court and it

was held that the matter requires trial.
                                22



     24.   The other contention of the learned counsel for the

petitioners is that the Court cannot take cognizance in respect of

MMDR offence. There is a force in the contention of the learned

counsel for the petitioners that law is settled that unless a

private complaint is filed, the Court cannot take cognizance in

respect of MMDR offence. There is a bar under Section 22 of the

MMDR Act and no Court shall take any cognizance. In the case

on hand, no doubt, the charge-sheet is filed for IPC offences and

MMDR Act is also invoked.         The learned counsel for the

respondent also brought to the notice of this Court by producing

the order sheet as well as the certified copy of the private

complaint and already filed the private complaint before the very

same Court and also endorsement made on the complaint by the

P.O. is placed on record dated 23.12.2015.      Hence, it is clear

that when the charge-sheet was filed, for both the IPC offences

and MMDR offences separate complaint is filed before the very

same Court and there is an endorsement. But on perusal of the

order sheet dated 23.12.2015, there is no any order passed on

the private complaint and the documents clearly discloses that

the same was filed before the very same Court. Having perused

the order sheet, not found anything about passing of order on
                                23



the private complaint. When already private complaint was filed

before the Trial Court for the MMDR offence, the Trial Court

ought to have taken the decision and if not taken any decision

on the private complaint, the Trial Court is directed to take

decision on the private complaint filed by the respondent, since

there is a specific bar under Section 22 of the MMDR Act and no

Court can take cognizance on the police report and on the

private complaint the Court can take cognizance. This Court as

well as the Apex Court in several judgments have held that

private complaint needs to be filed by an authorized person and

the Court can take cognizance and when both the private

complaint and the police report are filed before a Special Court,

the Trial Court has to act upon the private complaint and deal

with the matter in accordance with law and on the police report,

the Court cannot take cognizance and the Court can take

cognizance on the private complaint since there is a bar under

Section 22 of the MMDR Act. On that ground, the Court cannot

discharge the accused that MMDR offence was invoked and

cannot proceed with the case and the very same Court is having

power to deal with the matter when the private complaint is filed

invoking the offences under the special enactment.       I have
                                24



already pointed out that having perused the entire order sheet,

nothing is found with regard to the private complaint is

concerned, but there is an endorsement on the private complaint

"seen on 23.12.2015" and also complaint is signed by the

Superintendent of SIT, Karnataka Lokayuktha and the same is

also signed on 14.12.2015.    Hence, it is only a curable defect

and the same can be cured by passing appropriate order by the

concerned Court and on that ground also cannot be discharged.


      25.   Having considered the material on record, the very

contention that these two petitioners are in no way connected to

the day-to-day activities of the company cannot be accepted

when specific allegations are made and statement of witnesses

have been recorded and the same is placed on record. The very

contention of the petitioners that point for consideration is

erroneous cannot be accepted and the same is considered only

for consideration of discharge, since all of them have filed the

application for discharge.    No doubt, there is an error in

mentioning that one of the accused is the Managing Director.

But accused is not the Managing Director and he is a permanent

Director and another accused is the Deputy General Manager

and specific allegations are made that they are in helm of affairs
                                 25



of the company. To that effect, the documents are also placed

before the Court.   Under the circumstances, the contention of

the petitioners cannot be accepted and hence I do not find any

error in the order of the Trial Court in rejecting the application.

The Trial Court also rightly discussed with regard to the

conspiracy is concerned and the same requires trial and the

same also to be proved only inferring the circumstances and in

order to come to such a conclusion, unless the witnesses have

been examined and also with regard to the involvement of the

petitioners in trading of iron ore without the licence or permit

also to be considered during the course of trial.     The defence

cannot be considered at the time of considering the discharge

application. The Court has to look into the material collected by

the Investigating Officer during the course of investigation.

When ample material is available before the Court, the question

of discharge does not arise. Hence, I answer point No.(i) in the

negative.


Point No.(ii):

      26.    In view of the discussions made above, I pass the

following:
                              26



                            ORDER

The criminal revision petition is dismissed. The Trial Court is directed to pass appropriate order on the private complaint filed by the respondent in accordance with law.

Sd/-

(H.P. SANDESH) JUDGE MD