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Smart Summary

Factual and Procedural Background

The petitioner filed a petition under Section 482 of the Criminal Procedure Code seeking quashing of FIR No. 132 dated 7.7.2003. The FIR was registered at Police Station Sadar, Khanna, under Sections 420 IPC, 63 and 64 of the Copyright Act, 1957, and Section 79 of the Trade and Merchandise Marks Act, 1958. The FIR arose from a complaint by Suhail Mohmad Qureshi, Central Coordinator Brand Protection of TATA Steels, alleging that M/s Bikaner Steel Mills was manufacturing and selling counterfeit steel bars embossed with "TA-TA TMT," thereby misleading customers into believing they were genuine TATA TISCON products. The petitioner challenged the FIR contending that no offence under the cited provisions was made out.

Legal Issues Presented

  1. Whether the allegations in the FIR constitute an offence under Section 420 IPC.
  2. Whether Sections 63 and 64 of the Copyright Act apply to the steel bars produced by TATA TISCON using TMT technology.
  3. Whether an FIR can be registered and investigated under Section 79 of the Trade and Merchandise Marks Act, considering the cognizability of the offence.
  4. Whether it is proper to invoke Section 420 IPC in conjunction with the Trade and Merchandise Marks Act for the same allegations.

Arguments of the Parties

Petitioner's Arguments

  • No offence under Section 420 IPC was made out as there was no allegation specifying to whom the counterfeit bars were sold.
  • No copyright subsisted in the steel bars produced by TATA TISCON using TMT technology; thus, Sections 63 and 64 of the Copyright Act do not apply.
  • The offence under the Trade and Merchandise Marks Act is non-cognizable, so police cannot register an FIR or investigate the matter.
  • Reliance on the precedent set in Piyara Singh and others v. The State of Haryana, where it was held that invoking Section 420 IPC alongside the Trade and Merchandise Marks Act for the same allegations is unreasonable.

Respondent's Arguments

  • The FIR fulfills the ingredients of Section 420 IPC, the Trade and Merchandise Marks Act, and the Copyright Act.
  • Therefore, no case was made out for quashing the FIR.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Piyara Singh and others v. The State of Haryana, 2002 (3) RCR (Criminal) 290 (P&H) It is improper to invoke Section 420 IPC alongside the Trade and Merchandise Marks Act for the same allegations after the latter's enactment. The court relied on this precedent to hold that Section 420 IPC should not be applied in this case, as the allegations fall within the Trade and Merchandise Marks Act.

Court's Reasoning and Analysis

The court examined the FIR and found that the allegations under Section 420 IPC were vague, lacking any mention of a specific person being cheated. The court noted that copyright protection under Section 13 of the Copyright Act is limited to original literary, dramatic, musical, artistic works, cinematograph films, and sound records, and does not extend to steel bars produced using TMT technology. Consequently, no offence under Sections 63 and 64 of the Copyright Act was made out. The court further observed that the offence under Section 79 of the Trade and Merchandise Marks Act is non-cognizable, meaning police cannot register an FIR or investigate the matter. The court endorsed the principle from the Piyara Singh case that it is improper to apply Section 420 IPC in conjunction with the Trade and Merchandise Marks Act. The complainant retains the option to file a criminal complaint in the appropriate court to initiate proceedings.

Holding and Implications

The court allowed the petition and quashed the FIR No. 132 dated 7.7.2003.

The direct effect of this decision is that no criminal investigation or prosecution will proceed under the impugned FIR. The court clarified that offences under the Trade and Merchandise Marks Act are non-cognizable and police cannot initiate action without a complaint before the competent court. No new precedent beyond the application of existing law was established.

    Bikaner Steel Mills Petitioner v. State Of Punjab

    T.P.S Mann, J. — By filing the present petition under Section 482 Cr.P.C the petitioner is seeking quashing of FIR No. 132 dated 7.7.2003, registered under Sections 420 IPC, 63 and 64 of the Copyright Act, 1957 and 79 of the Trade and Merchandise Marks Act, 1958 at Police Station Sadar, Khanna.

    2. An application/complaint was submitted by Suhail Mohmad Qureshi, Central Coordinator Brand Protection, TATA Steels to the Director General of Police, Punjab stating therein that the Tata Iron Steel Company Limited, manufactures and sells a range of steel products. Reinforcement bars bearing marking “TATA TISCON” is one of its products which are produced by using TMT technology and made out of the finest steel. For quite sometime, TATA Steel had been receiving complaints from its various authorized dealers/distributors that M/s Bikaner Steel Mills, located at GT Road, Mandi Gobindgarh was manufacturing and embossing TA-TA TMT bars and also passing of this product in the market as original TATA product. Since the spurious material is embossed as TATA, it is misleading for the customers, who were not always in a position to identify the original TATA TISCON from counterfeit. Said Suhail Mohmad Qureshi also acquired one such bar made by M/s Bikaner Steel Mills with TA-TA embossed on it, which he presented along with an original TATA TISCON sample as evidence. Accordingly, an FIR was registered on the basis of the aforementioned complaint.

    3. While challenging the complaint (Annexure P-1), the petitioner submitted that no offence under Section 420 IPC was made out as there was no allegation as to whom the petitioner had sold the alleged counterfeit steel bars. Further that no offence under Sections 63 and 64 of Copyright Act was made out as no copyright subsisted in the steel bars produced by TATA TISCON by using TMT technology. Besides, the offence under the Trade and Merchandise Marks Act, was not congnizable in nature and the police could not register an FIR and investigate the same. Learned counsel for the petitioner relied upon Piyara Singh and others v. The State of Haryana, 2002 (3) RCR (Criminal) 290 (P&H), wherein it was held that after the coming into force of the Trade and Merchandise Marks Act, it would be unreasonable to add Section 420 IPC as well for the same very allegations, which were covered by the aforementioned Act.

    4. On behalf of the respondent, it was submitted that a perusal or the FIR fulfilled the ingredients of Section 420 IPC, besides those of the Trade and Merchandise Marks Act and the Copyright Act and thus, no case was made out for quashing of the FIR in question.

    6. The ratio of Piyara Singh (supra) is sufficient indication that in the trial of offence under Section 79 of the Trade and Merchandise Marks Act, it would be improper to use Section 420 IPC. Moreover, the allegations for committing offence under Section 420 IPC, as stated in the FIR, are vague in nature. No where, it is mentioned as to whether any private person had been cheated on account of the mis-representation allegedly made by the petitioner.

    6. As per Section 13 of the Copyright Act, copyright could subsist in original literary, dramatic, musical and artistic works, cinematograph films and sound record. There could be thus no copyright in the steel Bars produced by TATA TISCON by using TMT-Technology

    7. In view of the above, no offence under Section 420 IPC and also under Sections 63 and 64 of the Copyright Act was made out. The offence under Section 79 of the Trade and Merchandise Marks Act is non-cognizable in nature and no FIR could be registered. The Complainant will be at liberty to file a criminal complaint in the concerned Court, if so advised, so as to initiate criminal proceedings against the present petitioner.

    Petition allowed.

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    Bikaner Steel Mills Petitioner v. State Of Punjab
    (Aug 11, 2006)