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. " 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 themselves in a vicious battle in the social media like Facebook, Whatsapp, Twitter, etc. 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 petition was opposed by counsel appearing for 'Mygate', saying that the investee directors are incharge of the day to day affairs of the company for the reason that they are in control of the finances of the company, without the investment made by the Investor - venture capital company 'Nobroker' would not have the financial resources to spend for the offences to be committed.