THRUPTHI MARKETING Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) Heard Shri S.G. Muniswamy Gowda, learned advocate for the petitioners, Shri Nasrulla Khan, learned HCGP for the State and Shri Jacob Alexander, learned advocate for respondent No.2.

(2.) M/S.Joy Ice Creams Pvt. Ltd., Bengaluru, (Respondent No.2-Complainant) entered into an agreement with M/s. Thrupthi Marketing (First Petitioner) to supply the details of specifications of the Plant and Machinery and to train the technical staffs working with petitioner No.1. In consideration, petitioners paid a sum of Rs.2,00,000/- towards technical know-how fees. Petitioners had agreed to pay a royalty on Total Net Sale Consideration manufactured by them and sold them in the territories of Chittoor, Cuddapaha, Nellorre, Ananthapur, Vijaywada, Kurnool, Guntur and various other places. Complainant agreed to receive royalty at 2%. On August 28, 2007, complainant terminated the agreement with an immediate effect and called upon the petitioners to provide the Balance Sheets for the Financial Years of 2003-04 to 2006-07 and also stated that the petitioners shall be liable to pay difference in royalty with 18% interest along with the current dues.

(3.) On February 25, 2011, complainant filed a private complaint registered as PCR.No.26/2011 before X ACMM, Bengaluru. Learned Magistrate referred the case for investigation under Section 156(3) of Cr.P.C. After investigation, police filed 'B' Report. Complainant filed a protest petition. After recording sworn statement, learned Magistrate took cognizance of offence under Section 420 of IPC and issued process by his order dated September 28, 2013. Feeling aggrieved, petitioners have filed this petition with a prayer to quash the proceedings against them in C.C.No.52255/2014 before the learned Magistrate.