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  • S. 42(b) read with S. 22 of the Indian Electricity Act, 1910.2.
  • provisions of S. 14(2) of the Limitation Act, 1908,
  • provisions of S. 14(2) of the Limitation Act
  • S. 22 of the Indian Electricity Act
  • S. 14 of the Limitation Act 1908
  • 14 of the Limitation Act
  • S. 14 Limitation Act,
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Citation Codes
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citation codes
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  • S. 42(b) read with S. 22 of the Indian Electricity Act, 1910.2.
  • provisions of S. 14(2) of the Limitation Act, 1908,
  • provisions of S. 14(2) of the Limitation Act
  • S. 22 of the Indian Electricity Act
  • S. 14 of the Limitation Act 1908
  • 14 of the Limitation Act
  • S. 14 Limitation Act,
Smart Summary

Structured Summary of the Judgment

Factual and Procedural Background

The revisional application was filed by four petitioners seeking quashing of Case No. C/337 of 1975 pending before the Metropolitan Magistrate (11th Court), Calcutta, under Section 42(b) read with Section 22 of the Indian Electricity Act, 1910.

The factual matrix as stated in the complaint: the complainant was inducted as a tenant in August 1972 in premises No. 32B, Brindaban Basak Street and intended to start a plastic manufacturing business. The complainant applied for electric supply on 21.8.72 from the Calcutta Electric Supply Corporation Limited (petitioner No.1). Correspondence from Corporation officers (petitioners Nos. 2 to 4) indicated that supply to the previous consumer had been cut off for non-payment of dues and that clearance from the Revenue Department was necessary before supply could be given. The complainant repeatedly sought supply and wrote letters (including a lawyer's notice dated 22.1.73) but alleged that the Corporation and its officers wrongfully refused supply and demanded payment of arrears allegedly due from others, causing loss to the complainant.

Procedurally: on 12.2.73 the complainant filed the first complaint in the Chief Metropolitan Magistrate's Court; summons issued and appearance entered. After examination and cross-examination of some witnesses, petitioners applied (18.4.75) that Section 200 CrPC (old Code) had not been complied with; the learned Magistrate held cognizance was bad and discharged the accused. The complainant then filed a fresh complaint on 22.4.75; the Chief Metropolitan Magistrate issued process on 23.4.75 under S.42(b) read with S.22. Petitioner No.1 moved to dismiss the fresh complaint as time-barred under Section 468 of the CrPC (new Code). That application was dismissed by the Chief Metropolitan Magistrate (order dated 5.4.76) and the case was transferred to the Metropolitan Magistrate, 11th Court. The petitioners obtained the present Rule in the High Court; for reasons in an earlier order, the Rule as regards petitioner No.3 was discharged.

Legal Issues Presented

  1. Whether the fresh complaint is barred by limitation under Section 468 of the Code of Criminal Procedure, 1973, and if so whether the magistrate could take cognizance.
  2. Whether Section 470(1) of the new Code (exclusion of time during which another prosecution was prosecuted with due diligence) applies to exclude the period when the complainant prosecuted the earlier complaint, i.e., whether the proviso to S.470(1) is attracted.
  3. What is the meaning and effect of the word "entertain" in the proviso to S.470(1) and whether the earlier complaint was "unable to be entertained" within that meaning.
  4. Whether the proviso to Section 22 of the Indian Electricity Act (requiring arbitration to determine certain sums) is applicable so as to render the present prosecution premature.
  5. Whether the complaint discloses any offence by petitioners Nos. 2 and 4 under Section 49-A of the Indian Electricity Act (i.e., liability of persons in charge of company's business).

Arguments of the Parties

Appellants / Accused-Petitioners (as advanced by Mr. Sudhir Kumar Basu)

  • The fresh complaint is barred by limitation under Section 468 of the new Code because the offence under Section 42 (punishable with fine only) attracts a six-month period for filing a complaint, and the present complaint was filed after that period.
  • The learned Magistrate erred in rejecting the limitation plea by applying Section 470(1) of the new Code to exclude the period of prosecution of the earlier complaint; Section 470(1) does not apply because the earlier complaint was not dismissed on the ground that the court was "unable to entertain it" for defect of jurisdiction or "other cause of a like nature." The phrase "other cause of a like nature" must be read ejusdem generis and refer only to defects analogous to lack of jurisdiction, not to improper exercise of jurisdiction or procedural non-compliance.
  • The proviso to Section 22 of the Indian Electricity Act requires arbitration to resolve disputes as to sums payable for supply and therefore precludes the present prosecution until arbitration decides the dispute (i.e., the prosecution is premature if the dispute relates to amounts to be determined under the proviso).
  • The complaint does not disclose any offence by petitioners Nos. 2 and 4 under Section 49-A because there are no allegations that they were "in charge of, and responsible to, the company for the conduct of the business" at the relevant time.

Respondent / State (as advanced by Mr. Manas Ranjan Chakraborty and others)

  • Reliance on Supreme Court authority that the word "entertain" means "admit to consideration" and denotes proceeding to consider on merits or adjudicate upon; by this meaning, when the earlier court took cognizance it must be assessed whether it was unable to entertain the complaint — the State relied on this interpretive approach to support exclusion under S.470(1).
  • The State contended (implicitly through cited authorities and the court's narrative) that the earlier dismissal for bad cognizance due to non-compliance with S.200 amounted to a technical defect preventing the court from entertaining the complaint, thus attracting the proviso to S.470(1) and excluding the period for limitation computation.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Brahmananda Goyal v. N.C. Chakraborty, 79 CWN 60 Held that at the stage of examination under S.200 the Magistrate must record whether witnesses were present; non-recording makes the cognizance bad. The court relied on this decision to explain why the earlier complaint's cognizance was held bad and why the earlier proceeding was dismissed on a technical ground (non-compliance with S.200).
Kashiram v. Santoshbai, AIR 1958 M.P. 91 Interpreted Section 14(2) of the Limitation Act (language almost identical to proviso to S.470(1) of the new Code) and held that where a suit is dismissed not because the Court has no jurisdiction or other like cause, Section 14 is not attracted. The decision was cited by Mr. Basu to argue against application of the proviso; the court discussed it in analysing whether the earlier court was "unable to entertain" the complaint.
AIR (1945) Cal. 381 Discussed the meaning of "entertain" under S.14 of the Limitation Act; held that inability to entertain means inability to give a trial at all, and the section applies only where the previous suit or proceeding has not been heard on its merits. The court quoted and relied on the exposition to frame the question whether the earlier complaint was "entertained" or thrown out at inception; this formed part of the court's analysis of S.470(1)'s proviso.
AIR 1968 SC 488 Supreme Court view (cited) that "entertain" means "admit to consideration" and was understood to mean proceeding to consider on merits or adjudicate upon. The court used the Supreme Court's interpretation of "entertain" to conclude that receiving a complaint and taking cognizance are distinct stages and that cognizance equates to "entertaining" for the purposes of the proviso; thus it found the proviso applicable.

Court's Reasoning and Analysis

The court addressed the question whether the fresh complaint was barred by limitation and, if so, whether the period during which the complainant prosecuted the earlier complaint should be excluded under Section 470(1) of the new CrPC.

The court examined the proviso to S.470(1), which excludes from limitation the time during which a person prosecutes "another prosecution" provided that the earlier prosecution "relates to the same facts and is prosecuted in good faith in a Court which from defect of jurisdiction or other cause of a like nature, is unable to entertain it."

It analyzed competing authorities on the meaning of "other cause of a like nature" and of the word "entertain." The petitioners argued (through Mr. Basu) that "other cause of a like nature" must be read ejusdem generis and limited to defects analogous to lack of jurisdiction, and that "entertain" meant only cases where the court could not at all consider the complaint. The petitioners relied on Madhya Pradesh High Court and other decisions construing Section 14(2) of the Limitation Act to show non-application where a case was misconceived or dismissed on merits.

The court reviewed authority, including the Supreme Court decision (AIR 1968 SC 488) saying "entertain" means "admit to consideration" and that it implies proceeding to consider on merits or adjudicate upon. The court observed that "receiving a complaint" and "taking cognizance" are distinct stages: cognizance (when the court takes judicial notice and proceeds judicially) is tantamount to entertaining the complaint. The earlier complaint had been dismissed because the cognizance was bad ab initio due to non-compliance with S.200 (as per the decision in Brahmananda Goyal v. N.C. Chakraborty). That dismissal was on a technical ground rendering the court unable to entertain the complaint within the meaning of the proviso.

Applying these principles, the court concluded that the earlier complaint had been dismissed on "other cause of a like nature" (i.e., a technical procedural defect making it impossible for the court to entertain the complaint and decide it on merits). Therefore the proviso to S.470(1) applied and the time during which the complainant prosecuted the earlier complaint was to be excluded in computing limitation.

On the contention about the proviso to Section 22 of the Indian Electricity Act (requiring arbitration to determine certain sums), the court held that the proviso relates to minimum annual sums to give a reasonable return and cover standing charges for premises having a separate supply. The court found that the proviso did not apply to the present dispute (which concerned alleged arrears of others demanded from the complainant) and that the quantum of amount was not in dispute; rather the dispute was about the Corporation's asserted right to claim arrears from the complainant. Accordingly, the proviso to S.22 did not bar the prosecution.

Concerning Section 49-A (liability of persons in charge of a company's business), the court examined the allegations in the complaint:

  • Against petitioner No.2: the complaint alleged active dealings by that officer (District Engineer) in respect of the complainant's application; the court held these averments were sufficient to make out a prima facie case against petitioner No.2.
  • Against petitioner No.4: the only allegation was failure to reply to certain letters. The court held that such omission did not indicate that petitioner No.4 was a person "in charge of, and responsible to, the company for the conduct of the business" and that the allegations did not make out even a prima facie case against him.

On balance, the court dismissed the petitioners' challenge to the proceedings so far as petitioners Nos. 1, 2 and 3 were concerned, but allowed the challenge in respect of petitioner No.4.

Holding and Implications

Holding: The court's final orders were as follows:

  • Proceedings against petitioner No. 4 are quashed.
  • Proceedings against petitioners Nos. 1, 2 and 3 are not quashed (the prayer for quashing as regards them was dismissed).

Implications: The direct effect is that the criminal prosecution continues against petitioners Nos. 1, 2 and 3, while it is terminated against petitioner No.4. The court's decision rests on application of Section 470(1) of the CrPC (new Code) excluding the period of the earlier technically-defective prosecution from limitation computation, a determination that the proviso to Section 22 of the Indian Electricity Act did not apply, and a prima facie assessment under Section 49-A that supported continuation of proceedings against petitioner No.2 but not against petitioner No.4.

The opinion does not purport to lay down a new binding precedent; it applies existing statutory provisions and cited authorities to the facts of this case and disposes of the Rule accordingly.

Proceedings against petitioner No. 4 only quashed.

    The Electric Supply Corporation & Ors. v. Arun Kumar Dhar

    JUDGMENT

    1. In this revisional application the four petitioners pray for quashing the proceeding of Case No. C/337 of 1975 pending against them in the Court of the learned Metropolitan Magistrate, 11th Court, Calcutta, under S. 42(b) read with S. 22 of the Indian Electricity Act, 1910.

    2. The facts leading to the filing of the instant revisional application may be stated as follows:—

    On 12.2.73 the complainant-opposite party filed a petition of complaint in the Court of the Chief Metropolitan Magistrate, Calcutta, against the four accused-petitioners for having committed offence punishable under S. 42(b) of the Indian Electricity Act (hereinafter referred to as the Act) read with S. 22 of the Act. The allegations made in the said complaint were that the complainant was inducted as a tenant in premises No. 32B, Brindaban Basak Street, Calcutta-5, in the month of August, 1972, in respect of one ground floor room. The complainant intended to open a plastic manufacturing business in the said room and purchased the requisite machineries, furniture and fixtures for starting the said business and invested a considerable amount for the same. On 21.8.72 the complainant applied for electric supply in the said premises from the Calcutta Electric Supply Corporation Limited (hereinafter referred to as the Corporation), the petitioner No. 1 herein, in his own name and in the prescribed form of the Corporation. Accused No. 2, the District Engineer of the Corporation, by his letter dated September 8, 1972, intimated the complainant that supply to the previous consumer of the said premises was cut off for non-payment of outstanding dues and directed the complainant to contact the Senior Revenue Officer of the Corporation, North Regional Office. By the said letter it was further intimated to the complainant that before clearance to proceed is received from the Revenue Department of the Corporation, further correspondence cannot be entertained. The complainant was surprised to receive such a letter as he felt that he cannot be made liable or electricity supply can be withheld for non-payment of electricity bills by others of the said address. Accordingly, the complainant addressed a letter to the District Engineer on September 16, 1972, with a copy to the Senior Revenue Officer, petitioner No. 3, requesting him to reply to the same, but the accused No. 3 did not even care to reply to the said letter of the complainant. By a letter dated October 4, 1972, the Acting District Engineer requested the complainant to get in touch with the Revenue Department relating to outstanding dues and clearly mentioned that they were not in a position to proceed further unless clearance to proceed is received from the Revenue Department. On receipt of the said letter the complainant again wrote a letter to the District Engineer on 7.10.72 with a copy to the petitioner No. 3 and the Chairman of the Corporation. In the said letter the complainant wrote to the department concerned that there cannot be any outstanding dues as suggested in the letter dated 4.10.72 of petitioner No. 2 as because the Corporation has already given a new A.C electricity supply connection at the said address in the month of May, 1972 to a tenant Sri Panchu Gopal Dey, who runs a Hosiery business there. According to the complainant, he did not receive any reply to his letter from the petitioner No. 3 but the petitioner No. 2 by a letter dated October 24, 1972 assured the complainant that his letter was referred to the Revenue Officer who shall communicate to him in due course. Unfortunately, however, the Revenue Officer made no communication in spite of repeated requests of the complainant and due to non-supply of electricity the complainant could not start his business and had to suffer huge loss after laying out a considerable sum of money in his plastic goods manufacturing business. On November 15, 1972 the complainant wrote a letter to the Acting District Engineer and he was advised to meet the Senior Revenue Officer. As per the said advice the complainant met the officer concerned when he was told that no electricity connection can be given to the premises of the complainant unless a sum of Rs. 3,000/- approximately is deposited, being the amount due on account of electric consumption by other persons of the said premises which is lying unpaid. The complainant was further told that the said money was to be paid in the name of those persons who actually consumed the electricity and not in the name of the complainant. Finding no other alternative, the complainant on 15.12.72 wrote a letter to the Commercial Manager, the petitioner No. 4 herein, intimating him of the entire facts and requested him to give the electricity supply but no reply was given to the said letter. The complainant being convinced that the petitioner No. 1 through its officers, petitioners Nos. 2 to 4 were putting illegal pressure on the complainant for payment of dues of others, sent a lawyer's notice dated January 22, 1973 under registered post to the petitioner No. 4 for giving electric connection to the complainant but he did not arrange for the electric supply to the premises of the complainant nor did he even care to reply to the lawyer's letter. On the above allegations the complainant averred in the petition of complaint that as he was a resident within the area of supply of the Corporation he is entitled to have supply of electric energy and the petitioner No. 1 being the licensee and the other accused persons being the officers of the petitioner No. 1 were bound to supply electric energy to the complainant but they having illegally and wrongfully refused to supply electricity to the complainant, committed offence punishable under S. 42 of the Act.

    3. On the basis of the said complaint, summons were issued against the four petitioners and after they entered appearance, the case was transferred to the Court of the learned 4th Metropolitan Magistrate, Calcutta for disposal. After some witnesses on behalf of the complainant were examined and cross-examined, an application was filled on 18.4.75 on behalf of the petitioners, inter alia, submitting that the provisions of S. 200 of the Code of Criminal Procedure, 1898 having not been complied with there was a lacuna in taking cognizance of the offence and as such, the entire proceeding against them was void ab initio. The learned Magistrate on a consideration of the materials on record and in view of a decision of this Court held that the cognizance taken was bad in law and accordingly discharged the accused persons from their bail bonds.

    4. The complainant, thereafter, on 22.4.75 filed a fresh petition of complaint on the self-same allegations before the learned Chief Metropolitan Magistrate, Calcutta, against the four petitioners. The learned Magistrate perused the complaint and called for the records of the previous case from the Court of the learned Metropolitan Magistrate, 4th Court. On perusal of the complaint, the records of the previous case and the correspondences that passed on between the parties, the learned Chief Metropolitan Magistrate by his order dated 23.4.75 issued process against the petitioners to stand their trial under S. 42(b) read with S. 22 of the Act. The petitioners entered appearance in connection with the case and on 5.7.75 a petition was filed on behalf of the petitioner No. 1 praying for dismissal of the complaint on the ground that the same was barred by limitation under S. 468 of the Code of Criminal Procedure, 1973 (hereinafter referred to as the new Code). This application was heard in presence of the parties and by his order dated April 5, 1976 the learned Chief Metropolitan Magistrate, Calcutta dismissed the application of the petitioner No. 1 and transferred the case to the file of the Metropolitan Magistrate, 11th Court, Calcutta for disposal. The petitioners, thereafter, moved this Court and obtained the present Rule. For reasons given in my order dated 4.10.77, the Rule in respect of petitioner No. 3, however, stands discharged.

    5. Mr. Sudhir Kumar Basu, the learned Advocate appearing for the accused-petitioners firstly contended that as the present complaint is barred by limitation under S. 468 of the new Code the learned Magistrate could not have taken cognizance of the complaint and as such, the entire proceeding is void ab initio and liable to be quashed. According to Mr. Basu, the offence under S. 42 of the Act being punishable with fine only, the period of limitation for filling such complaint is six months and as the present complaint has been filed long after the said period, the learned Magistrate was not entitled to take cognizance of the same. Mr. Basu submitted that in rejecting the prayer of the petitioner No. 1 for dismissal of the complaint on this ground the learned Magistrate has taken recourse to S. 470(1) of the new. Code by excluding the time during which the complainant was prosecuting the earlier complaint but, according to Mr. Basu, the said section has no application to the facts of the instant case. There is, however, no controversy that if the period during which the complainant had been prosecuting the earlier complaint is excluded under S. 470(1) of the New Code for computing the period of limitation, the present complaint is not barred by limitation. The point, therefore, for consideration is whether S. 470(1) of the New Code is applicable to the facts of the instant case.

    Section 470(1) of the New Code reads as follows:

    “In computing the period of limitation, the time during which any person has been prosecuting with due diligence another prosecution, whether in a Court of first instance or in a Court of appeal or revision, against the offender, shall be excluded:

    Provided that no such exclusion shall be made unless the prosecution relates to the same facts and is prosecuted in good faith in a Court which from defect of jurisdiction or other cause of a like nature, is unable to entertain it.”

    5. According to Mr. Basu, the earlier complaint in the instant case was not dismissed on the ground that the court from defect of jurisdiction or other cause of a like nature was unable to entertain it. The words “other cause of a like nature”, according to Mr. Basu, has to be read ejusdem generis and it can only be applicable in respect of a proceeding where the Court suffered from initial lack of jurisdiction and not in a case where the Court had jurisdiction but there was improper or illegal exercise of such jurisdiction. To appreciate this contention of Mr. Basu, it has to be borne in mind that the earlier complaint was dismissed on the ground that the cognizance was bad as there was a non-compliance with the provisions of S. 200 of the Code of Criminal Procedure, 1898. In a decision of this Court reported in 79 CWN 60 (Brahmananda Goyal v. N.C Chakraborty) it was held that the learned Magistrate at the stage of examination of the complainant under S. 200 of the said Code was obliged to record in the order-sheet whether his witnesses were present or not. Non-recording of such fact, according to the decision of this Court, made the cognizance bad. It is in the context of the said decision of this Court that the learned Magistrate at a subsequent stage of the proceeding discharged the accused due to non-compliance with the said provisions of S. 200.

    7. In my considered view the circumstances which weighed with the learned Magistrate in dismissing the earlier complaint comes within the purview of “other cause of a like nature”. The words “other cause of a like nature” refer to cases where the action of a Court is prevented by some unavoidable circumstances over which no one has any control or was something incidental to the Court itself and not due to any negligence on the part of the prosecution. The defect must be of such a character so as to make it impossible for the Court to entertain the complaint and to decide it on its merits. The proviso to S. 470(1) of the New Code would apply where the Court in which the previous proceeding was instituted was unable to entertain it on account of the Court's defect of jurisdiction or some causes of like nature, that is, on some technical ground and, therefore, rejected it but it would not apply where the previous proceeding was dismissed after adjudication on its merits. There is no doubt that in the instant case the earlier complaint was dismissed on some technical grounds and, therefore, such a ground falls squarely within the meaning of “other causes of like nature.”

    8. With reference to the self-same proviso, another point that has been raised by Mr. Basu, is that in the instant case the Court before which the earlier complaint was filed was able to entertain it and in fact, entertained it and, therefore, it does not come within the words “unable to entertain it” appearing in the said proviso. According to Mr. Basu, the said proviso can only be applicable in a case where the Court due to some reason or other is unable to entertain the complaint, like sanction etc., but is not applicable to a case where the Court could entertain the same but for some reason or other subsequently failed to exercise its jurisdiction in connection with the said case. In this connection Mr. Basu has referred to a decision reported in AIR 1958 M.P 91 (Kashiram v. Santoshbai). Their Lordships of the Madhya Pradesh High Court in that decision was considering the provisions of S. 14(2) of the Limitation Act, 1908, language of which is almost identical with that of the proviso to S. 470(1) of the New Code. In construing the provisions of S. 14(2) of the Limitation Act their Lordships held:

    “In our opinion, when a suit is dismissed not because the Court has no jurisdiction to entertain it, or for any other cause of a like nature, but because it was misconceived or because the proceeding or the suit was not recognised by law as legal in its initiation then clearly section 14 of the Act is not attracted to such a suit.”

    Then again in the self-same judgment their Lordships held:

    “Section 14 of the Limitation Act speaks of the inability of the Court to entertain a suit or proceeding on certain specific grounds, which are of a formal nature and inability to entertain a suit means not inability to grant relief to the plaintiff but inability to give him a trial at all.”

    For arriving at such decision their Lordships relied upon a decision of this Court reported in AIR (1945) Cal. 381 where the meaning of the word ‘entertain’ under S. 14 of the Limitation Act 1908 also came up for consideration. Mukherjee J. (as his Lordship then was) while delivering the judgment observed as follows:

    “The inability to entertain a suit means not inability to grant relief to the plaintiff but inability to give him a trial at all, and as S. 14 Limitation Act, can be invoked only in cases where the previous suit or proceeding has not been heard on its merits the word ‘entertain’ seems to have been deliberately used by the Legislature. Because the section speaks of the inability of the Court to entertain a suit or proceeding on certain specific grounds only, which are of a formal nature it cannot be argued that by implication the Legislature concedes that the Court might be regarded as not entertaining a suit even when the suit fails on its merits…………………… We adhere to the view which we have taken in the cases referred to above and hold that a suit is to be regarded as not ‘entertained’ by the Court only if it is thrown out at its inception and the Court does not decide it on its merits……………………It is true that the mere fact that a suit or application is entered in the register of the Court is not conclusive to show that it was entertained. The question whether it is entertainable or not might be raised at a later stage and the Court might then decide not to entertain the case. It is not necessary for us to formulate exhaustively the different grounds upon which a Court might refuse to entertain a suit or proceeding. They may include grounds of jurisdiction and of procedure as well, and in each case the point for determination would be whether the Court did entertain the suit or application and then decided that the plaintiff was not entitled to any relief or it declined to embark upon the case at all.”

    It would thus appear from the above observations in the said two decision that the entire questions boils down to the meaning of the word ‘entertain’ as appearing in the proviso to S. 470(1) of the New Code.

    9. Mr. Manas Ranjan Chakraborty learned Advocate appearing for the State-opposite party has referred to a decision of the Supreme Court reported in AIR 1968 SC 488. In this decision Their Lordships relying on the dictionary meaning of the word ‘entertain’ and a number of decisions of the Allahabad High Court expressed the view that the word ‘entertain’ means ‘admit to consideration’ and quoted with approval the view of the Allahabad High Court that the word ‘entertain’ meant not ‘receive’ or ‘accept’, but ‘proceed to consider on merits’ or ‘adjudicate upon.’

    10. Keeping in view the above meaning of the word ‘entertain’ as interpreted by the Supreme Court let us now see whether in the facts of the instant case the Court was unable to entertain the previous complaint. As I have already indicated the Court discharged the accused persons as it was of the view that the cognizance was bad ab initio. It is now a settled law, that ‘cognizance’ means “become aware of” and when used with a reference to a Court of Judge, “to take notice of judicially” or in other words when the court takes a matter for judicial consideration to further proceed into the matter that means taking cognizance. In my view, receiving a complaint and taking cognizance thereon are two distinct things and stages of a criminal proceeding. After receiving a complaint when the court decides to take notice of it judicially then only comes the stage of cognizance and such taking of cognizance is the same as admitting for judicial consideration and amounts to “entertainment of the complaint”. In other words, only when the court decides to take cognizance it entertains the complaint and not before it. That being the position, in my considered view having regard to the facts and circumstances of the instant case the learned Magistrate was unable to entertain the complaint. It necessarily follows, therefore, that the proviso to S. 470(1) is squarely attracted to the facts of the instant case. This contention of Mr. Basu must, therefore, be overruled.

    11. The next branch of Mr. Basu's argument is that the proviso to S. 22 of the Indian Electricity Act is applicable to the facts of the instant case and, therefore, the instant prosecution against the petitioners is premature. According to Mr. Basu, on the face of the allegations made in the complaint there ts a dispute between the Corporation and the complainant as to the amount to be paid for supply of electric energy and such dispute is required to be decided by arbitration in view of the proviso to S. 22 and before the matter is decided in such arbitration the instant complaint could not have been filed. I am, however, unable to accept this contention. The proviso to S. 22 of the Indian Electricity Act, in my view, has no application to the instant case. The said proviso reads as follows:

    “Provided that no person shall be entitled to demand, or to continue to receive, from a licensee a supply of energy for any premises having a separate supply unless he has agreed with the licensee to pay to him such minimum annual sum as will give him a reasonable return on the capital expenditure, and will cover other standing charges incurred by him in order to meet the possible maximum demand for those premises, the sum payable to be determined in case of difference or dispute by arbitration.”

    12. A plain reading of the above proviso would unmistakably show that this has nothing to do with payments to be made for arrear electricity charges for others as claimed by the Corporation from the complainant. Then, again, here the quantum of amount is not in dispute. What is disputed, as appears from the complaint itself, is the purported right of the Corporation to claim for arrears receivable from other tenants. In that view of the matter, therefore, this proviso has no application to the facts of the instant case.

    13. Mr. Basu has lastly argued that the complaint does not disclose any offence in respect of the petitioners Nos. 2 and 4 and as such the proceeding is liable to be quashed at least so far as they are concerned. To appreciate the argument for Mr. Basu let me refer to the relevant portions of S. 49-A of the Act which provides:

    “If the person committing an offence under this Act is a company, every person who at the time the offence was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly”.

    14. According to Mr. Basu in absence of any allegation in the complaint that the petitioners Nos. 2 and 4 were in charge of and were responsible to the company for the conduct of the business they cannot be made liable for any action of the accused No. 1. I have already detailed the allegations made in the complaint against the petitioners Nos. 2 and 4. The petition of complaint prima facie shows that the accused No. 2 was dealing with the affairs of the Corporation in respect of the application of the complainant for electric supply. These averments made in the petition of complaint are, in my view, sufficient to make out a prima facie case against the accused No. 2. As regards the petitioner No. 4, however, I find that the only allegation that has been made in the petition of complaint is that he did not reply to certain letters written by or at the instance of the complainant. Merely because the petitioner No. 4 refused to reply to certain letters it does not indicate that he was a person responsible to the company for the conduct of the business of the Corporation in relation to supply of electric energy to different applicants, including the complainant. The allegations made in the petition of complaint so far as the petitioner No. 4 is concerned do not make out even any prima facie case against the petitioner No. 4.

    15. In view of the above discussions I dismiss the prayer of the petitioners Nos. 1, 2 and 3 for quashing of the proceedings but I allow the prayer of petitioner of No. 4 and quash the proceeding pending against him.

    The rule is disposed of accordingly.

    Proceedings against petitioner no. 4 only quashed.

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    Comments

    The Electric Supply Corporation & Ors. v. Arun Kumar Dhar
    (Oct 6, 1977)