A.S. RAGHUVENDRA, S/O A.L. SATYANARAYAN, PROPRIETOR ANUR GLASS AND PLYWOOD AND A.S. NAGARAJ S/O A.L. SATYANARAYAN Vs. THE SUB-INSPECTOR OF POLICE AND GOYL ISPAT R/BY ITS GENERAL MANAGER MR. VIVEKANAND S. PAI

JUDGEMENT

(1.) PETITIONERS are brothers. 1st petitioner claims to be the proprietor of a business concern known as M/s Anur Glass and Plywood situated at M.B. Road, Kolar. According to them, they are carrying on business in Iron and Steel, Cement, paints, glass and plywood and other construction materials. 1st petitioner is a registered dealer under VAT Act as well as CST Act and he is assessed to income tax. Similarly, 2nd petitioner is running a similar business at Brahmin Street, Kolar under the name and style of Nagaraj Traders, he is also assessed to income tax and also registered dealer under VAT Act and CST Act. According to them, in the usual course of business, they are purchasing iron and steal from various re -rolling mills and also from other dealers throughout Karnataka. Similarly, petitioners were also purchasing steel from M/s Eshwar Trading Company of Tumkur and from 5.7.2007 till the date of filing the petition 1st petitioner had purchased steel in a sum of Rs.90 lacs spread over 20 transactions by making payments through bank and that the materials were dispatched by Eshwar Trading Company, Tumkur from the factory directly to the 1st petitioner. In the course of business, M/s Eshwar Trading Company said to have purchased certain materials from one M/s Goyal Ispat, Hubli to deliver goods directly to the petitioners and after receipt of goods payments were made to M/s Eshwar Trading Company in terms of the contract. It is stated that 1st petitioner is due in a sum of Rs. 26,556/ - only to M/s Eshwar Trading Company.

(2.) R -2 on the ground that M/s Eshwar Trading Company did not make payment payable to it in respect of the transaction occurred between R -2 and M/s Eshwar Trading Company, a complaint was lodged on 21.10.2007 by its manager Vivekananda S. Pai stating that M/s Eshwar Trading Company has failed to pay the; value of 70 tonnes of steel as promised, therefore R -2 manager on 21.10.2007 lodged a complaint stating that the proprietor of Eshwar Trading Company is absconding and he has cheated R -2 in respect of the value of Rs.20 lacs, therefore, R -2 requested the Inspector of Police, Town Police Station, Tumkur to trace steel sold by R -2 and return the same or to get the value of the steel sold to M/s Eshwar Trading Company. A complaint was received by the Inspector, Town Police Station, Tumkur on 21.10.2007 at about 11 a.m., a case was registered in Cr. No. 106/2007 for the offences said to have committed under Section 406 and 420 of IPC.

(3.) R -1 filed a counter denying the allegations made in the petition. According to R -1, on receipt of the complaint from R -2, an investigation was made and during investigation it was found that one R.V. Ramesh Babu of M/s Eshwar Trading Co. has sold 70 tons of steel which was seized from the petitioners during the course of investigation and the same has been produced in CC No. 23/2007 before CJM., Tumkur and it was contended by R -1 that he has seized the material in good faith. R -1 contends that writ petition filed by the petitioners is not maintainable. R -2 has also filed counter. According to R -2, writ petition is not maintainable and that an alternative remedy is available to the petitioners and the petitioners have to resort to the Code of Criminal Procedure if they are so aggrieved; therefore requested the court to dismiss the writ petition.