M/S KNIT PRO INTERNATIONAL vs. THE STATE OF NCT OF DELHI

Case Type: Criminal Appeal

Date of Judgment: 20-05-2022

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REPORTABLE IN THE SUPREME COURT OF INDIA CRIMINAL APPELLATE JURISDICTION CRIMINAL APPEAL NO. 807 of 2022  M/s Knit Pro International     ...Appellant  Versus The State of NCT of Delhi & Anr.                       ...Respondents J U D G M E N T  M. R. Shah, J. 1. Feeling   aggrieved   and   dissatisfied   with   the   impugned judgment and  order  dated  25.11.2019 passed by  the  High Court of Delhi at New Delhi in Writ Petition (Crl.) No.3422 of 2018   by   which   the   High   Court   has   allowed   the   said   writ petition and has quashed the FIR bearing No.431 of 2018 filed against the respondents for the offences under Sections 63 and 65 of the Copyright Act, 1957 (hereinafter referred to as ‘Copyright Act’), the original complainant has preferred to the Signature Not Verified Digitally signed by Jatinder Kaur Date: 2022.05.20 17:14:34 IST Reason: present appeal. 1 2. That   the   appellant   herein   filed   an   application   under Section 156(3) Cr.P.C. and sought directions from the learned Chief   Metropolitan   Magistrate   for   the   registration   of   FIR against   the   respondent   No.2   herein  for   the   offences   under Sections 51, 63 & 64 of the Copyright Act read with Section 420 of the IPC.  By order dated 23.10.2018, the learned CMM allowed the said application and directed the concerned SHO to register the FIR under the appropriate provision of law. That pursuant to the said order, FIR bearing No.431 of 2018 came   to   be   registered   with   PS   Bawana.     That   thereafter respondent no.2 herein – original accused filed the present petition before the High Court with a prayer to quash the criminal proceedings on various grounds.   However, at the time of hearing, the original writ petitioner – accused prayed to quash the criminal proceedings on the sole ground that the offence   under   Section   63   of   the   Copyright   Act   is   not   a cognizable and a non­bailable offence. 2.1 By the impugned judgment and order the High Court has allowed the said writ petition and has quashed the criminal proceedings and the order passed by the learned CMM passed 2 in   Criminal   Application   under   Section   156(3)   Cr.P.C.   by holding that the offence under Section 63 of the Copyright Act is a non­cognizable offence. 3. Mr. R.K. Tarun, learned counsel appearing on behalf of the appellant has vehemently submitted that the High Court has committed a grave error in observing and holding that the offence punishable under Section 63 of the Copyright Act is a non­cognizable offence and it does not fall within Part II of the First Schedule of the Cr.P.C. 3.1 It is submitted that while holding that the offence under Section 63 of the Copyright Act is a non­cognizable offence, the High Court has not properly appreciated the decision of this Court in the case of   Rakesh Kumar Paul vs. State of Assam, (2017) 15 SCC 67   and has misinterpreted the said judgment.    3.2 It is submitted that in the case of  Intelligence Officer, Narcotics Control Bureau vs. Sambhu Sonkar, AIR 2001 it is specifically observed and held by this Court that SC 830,  the maximum term of imprisonment that is prescribed for the 3 said   offence,   cannot   be   excluded   for   the   purpose   of classification of the offence. 3.3 It is submitted by learned counsel for the appellant that for the offences under Section 63 of the Copyright Act, the punishment shall be imprisonment for a term which shall not be less than six months but which may extend to three years. It is submitted that therefore the punishment of three years can be imposed for the said offence.  It is submitted therefore that Part  II  of  the  First Schedule  of  the  Cr.P.C. would  be applicable.   It   is   submitted   that   only   in   a   case   where   the offence   punishable   with   imprisonment   for   less   than   three years or with fine only offence shall be non­cognizable.  It is submitted that as  per Part II  of the  First  Schedule of  the Cr.P.C,. if the offence is punishable with imprisonment for three years and upwards but not less than 7 years, the offence would be cognizable.  It is submitted that in that view of the matter   the   High   Court   has   committed   a   grave   error   in quashing the FIR while holding that the offence under Section 63 of the Copyright Act is a non­cognizable offence.  4 4. Present   appeal   is   vehemently   opposed   by   Shri Siddhartha   Dave,   learned   Senior   Advocate   appearing   on behalf of respondent no.2. 4.1 Shri   Dave,   learned   Senior   Counsel   has   heavily   relied upon the decision of this Court in the case of  Rakesh Kumar Paul (supra).   It is submitted that in the aforesaid decision the expression “not less than 10 years” has been interpreted by this Court and it is held that the said expression would mean punishment should be 10 years and therefore, Section 167(2) (a)(i) would apply.   It is submitted that in that view of the matter the High Court has not committed any error in holding that the offence under Section 63 of the Copyright Act is a non­cognizable offence. 4.2 In   the   alternative,   it   is   prayed   by   Shri   Dave   learned Senior Advocate appearing on behalf of respondent no.2 that if this  Court  holds  that the   offence  under   Section  63  of   the Copyright Act is a cognizable offence, in that case, the matter may be remanded to the High Court to decide the writ petition on merits on other grounds, as no other grounds were pressed into service. 5 5. We have heard learned counsel for the respective parties at length. 5.1 The   short   question   which   is   posed   for   consideration before this Court is, whether, the offence under Section 63 of the Copyright Act is a cognizable offence as considered by the Trial Court or a non­cognizable offence as observed and held by the High Court. 5.2 While answering the aforesaid question Section 63 of the Copyright Act and Part II of the First Schedule of the Cr.P.C. are required to be referred to and the same are as under: " 63.   Offence   of   infringement   of   copyright   or other rights conferred by this Act.  ­ Any person who knowingly infringes or abets the infringement of­   (a) the copyright in a work, or    (b) any other right conferred by this Act, except the   right   conferred   by   section   53A   except   the   right conferred   by   section   53A   shall   be   punishable   with imprisonment for a term which shall not be less than six months but which may extend to three years and with fine which shall not be less than fifty thousand rupees   but   which   may   extend   to   two   lakh   rupees: Provided   that   where   the   infringement   has   not   been made for gain in the course of trade or business the court   may,   for   adequate   and   special   reasons   to   be mentioned   in   the   judgment,   impose   a   sentence   of imprisonment for a term of less than six months or a fine of less than fifty thousand rupees.   6 Explanation ­ Construction of a building or other structure which infringes or which, if completed, would infringe the copyright in some other work shall not be an offence under this section." II – CLASSIFICATION OF OFFENCES AGAINST OTHER LAWS
OffenceCognizable or<br>non­cognizableBailable or<br>non­<br>cognizableBy what<br>court triable
If punishable<br>with death,<br>imprisonment<br>for life, or<br>imprisonment<br>for more than<br>7 yearsCognizableNon­bailableCourt of<br>Session
If punishable<br>with<br>imprisonment<br>for 3 years<br>and upwards<br>but not more<br>than 7 years.CognizableNon­bailableMagistrate of<br>the first class
If punishable<br>with<br>imprisonment<br>for less than<br>3 years or<br>with fine<br>only.Non­cognizableBailableAny<br>Magistrate
5.3 Thus, for the offence under Section 63 of the Copyright Act,   the   punishment   provided   is   imprisonment   for   a   term which   shall   not   be   less   than   six   months   but   which   may extend to three years and with fine.  Therefore, the maximum 7 punishment   which   can   be   imposed   would   be   three   years. Therefore, the learned Magistrate may sentence the accused for a period of three years also.   In that view of the matter considering Part II of the First Schedule of the Cr.P.C., if the offence is punishable with imprisonment for three years and onwards   but   not   more   than   seven   years   the   offence   is   a cognizable   offence.     Only   in   a   case   where   the   offence   is punishable for imprisonment for less than three years or with fine only the offence can be said to be non­cognizable.  In view of the above clear position of law, the decision in the case of Rakesh Kumar Paul (supra)   relied upon by learned counsel appearing on behalf of respondent no.2 shall not be applicable to   the   facts   of   the   case   on   hand.     The   language   of   the provision in Part II of First Schedule is very clear and there is no ambiguity whatsoever. 6. Under the circumstances the High Court has committed a grave error in holding that the offence under Section 63 of the Copyright Act is a non­cognizable offence.   Thereby the High   Court   has   committed   a   grave   error   in   quashing   and setting aside the criminal proceedings and the FIR. Therefore, the impugned judgment and order passed by the High Court 8 quashing   and   setting   aside   the   criminal   proceedings/FIR under Section 63 of the Copyright Act deserves to be quashed and set aside. 7. In view of the above discussion and for the reason stated above, it is observed and held that offence under Section 63 of the Copyright Act is a cognizable and non­bailable offence. Consequently, the impugned judgment and order passed by the High Court taking a contrary view is hereby quashed and set  aside   and   the   criminal   proceedings   against   respondent no.2 for the offence under Sections 63 & 64 of the Copyright Act now shall be proceeded further in accordance with law and on its own merits treating the same as a cognizable and non­bailable offence.   Present   appeal   is   allowed   to   the   aforesaid   extent. However, in the facts and circumstances of the case there shall be no order as to costs. …………………………………J.                   (M. R. SHAH) …………………………………J.  (B.V. NAGARATHNA) New Delhi,  May 20, 2022. 9