When There Is Complaint & Counter-Complaint On Similar Allegations, Parties Cannot Seek Quashing Saying Case Is Of Civil Nature : Karnataka HC

The Karnataka High Court has dismissed petitions seeking quashing of criminal complaints filed by start-up companies Mygate and NoBroker, against each other. The court while dismissing the petitions held that once a party files a criminal complaint against the other and if such others were to file a criminal complaint against the first complainant, then the first complainant cannot be heard to say that the second complaint is purely commercial and has to be quashed. Justice Suraj Govindaraj said "The documents filed give rise to a very sorry state of affairs between two companies who claim to be the leaders in their field. The documents produced would indicate the mud-slinging campaign resorted to by both companies against each other."It added "One of the cardinal rules for a party to claim for quashing of the criminal proceedings on the ground that the allegations made therein are relating to a civil dispute is that such a person ought not to have filed a criminal complaint on the very same set of facts and/or on very similar allegations."The Court added : "When there is a complaint and counter complaint filed on the basis of similar allegation alleging criminal offences neither of the parties can be heard to say that the complaint against it is civil/commercial in nature, while the complaint filed by it is proper and correct." It added :"In the present case, both 'Mygate' and 'NoBroker' have made similar if not identical allegations against each other. According to both of them their data has been stolen by the other. Having made such a complaint against the other, it would not now lie for either of the parties to contend that the complaint filed against their clients cannot be continued since the disputes are commercial in nature." Case details: A complaint came to be filed by 'Mygate' against 'NoBroker' and its Directors/Officers on 19.06.2020 with CID, Cyber Crime Division, Bangalore for offences punishable under Section 406, 408, 411 and 420 of IPC and Sections 66(C) of the Information Technology Act, 2000. It is alleged that 'Mygate's confidential information has been stolen by 'NoBroker' and its employees. 'NoBroker' has been misusing the information of 'Mygate' in order to establish business relationships with the 'Mygate' existing customers and also defame 'Mygate'. It was claimed that a detailed internal investigation was carried out by 'Mygate' leading to a conclusion that 'NoBroker' was stealing the data of 'Mygate'. 'Mygate' set up traps in Bangalore by setting up a mock customer and also mock customer information. The said mock customer received a call from 'NoBroker'. An employee of 'NoBroker' who sought to sell the 'NoBroker' package and/or services. This according to 'Mygate' establish that 'NoBroker' had access to the information of 'Mygate', which had not been shared with anybody else and this according to 'Mygate' amounts to theft of information and data by 'NoBroker' of that available with 'Mygate'. Subsequently, 'NoBroker' filed a complaint on 28.06.2020 against 'Mygate' and its employees for offence punishable under Sections 420 of IPC and Sections 66, 43 of the Information Technology Act, 2000, complaining of various sharp and unethical practices of 'Mygate'. It is stated that 'NoBroker' had set up a mock society, mock crime as also mock customer and the mock customer received calls from 'Mygate' employees offering 'Mygate' services to such mock clients. It is alleged that the details of the account created for the mock society was not available in public domain yet 'Mygate' and its employees having access to the information and contacted the mock customer. In this background, it is alleged that there is theft of data of 'NoBroker' committed by 'Mygate'. To support and establish the above allegations, it is stated that there are various whatsApp messages, which are available, which could be provided to the Investigating Agency. It is further alleged that 'Mygate' had planted its employees or agents in the Corporate Office of 'NoBroker' with an intention of stealing 'NoBroker's confidential information and to misappropriate 'NoBroker' sensitive data and as such, action was sought to be taken against 'Mygate' and its employees for the Submissions made on behalf of the petitioner: Counsel for the either parties contend in respect of complaints filed against their respective clients that the offences alleged are commercial in nature, civil in nature and criminal proceedings ought not to be continued, however, when it came to complaints by their respective clients they wanted the investigation to go on. Court observed: The bench observed "Though there are criminal complaints filed, investigation is in progress and this Court is seized of the matter, it is seen from the documents produced that while the above matter was pending before this Court both 'NoBroker' and 'Mygate' have involved...

When There Is Complaint & Counter-Complaint On Similar Allegations, Parties Cannot Seek Quashing Saying Case Is Of Civil Nature : Karnataka HC

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