K.N.S OVERSEAS PRIVATE LIMITED Vs. STATE

JUDGEMENT

(1.) This petition is arising out of Crime No.22/2014 (Spl.C.C.596/2015). Petitioners are shown as accused Nos.1 and 2 and they are sought to be prosecuted for the offences punishable under Ss. 409, 420 r/w 120B of IPC and Ss. 21, 23 r/w 4(1), 4(1A) of the Mines and Minerals (Development and Regulation) Act, 1957 (for short 'M.M.D.R. Act') and Rules 165 and 144 of the Karnataka Forest Rules, 1969.

(2.) The material allegations leveled against the petitioners in the charge sheet are that petitioner No.2 - Sri.K.N.Surendra being the Managing Director of petitioner No.1 - M/s. K.N.S. Overseas Pvt. Ltd. purchased 25,111 MT Iron ore from accused No.6 without a valid permit from the Mines Department and from the Forest Department and exported the same and thereby caused loss of Rs.3,83,03,720.00 to the State Exchequer and thereby committed the above offences.

(3.) The main limb of argument of the learned counsel for petitioners is that even going by the allegations made in the charge sheet, petitioners are mere traders. The allegations made against them go to show that they had purchased and exported the iron ore. Petitioners are not required to obtain any license or permit either from the Mines Department or from the Forest Department. As per Sec. 9 of the M.M.D.R. Act, liability to pay royalty is on the holder of the mining lease. Referring to Sub-Sec. (2) of Sec. 9 of the M.M.D.R. Act, the learned counsel for the petitioners pointed out that as per the said provisions: