Karnataka High Court: Employee Cannot Initiate Criminal Proceedings After Termination To Arm Twist Employer

The Karnataka High Court in the case Samiulla v. State Of Karnataka observed and has stated that an employee, who is terminated from the organisation and cannot initiate criminal proceedings against the organisation for the alleged criminal breach of trust and cheating.
The single bench comprising of bench of Justice M Nagaprasanna observed and has allowed the petition filed by one Samiulla B and quashed the case pending against him before the IV Additional Chief Metropolitan Magistrate, Bengaluru. Sti Mutturaj G.S., an FIR has been filled by the employee for the offences punishable under Section 420, Section 406, Section 506, Section 149 of the Indian Penal Code, 1860 against the petitioner and others.
In 2018, the employee of TTC News Channel was terminated by the organisation along with others on account of a purported financial crisis. However, after this termination, the employee lodged the police complaint against the petitioner alleging that he was terminated without following due process of law.
Findings of the Court:
The bench observed and has referred to the notice issued by the organisation to its employees which stated that the news channel had suffered repetitive and recurring losses and consequently the Board of Directors have decided to suspend the operations of the business till further notice.
The court stated that the notice clearly indicated that the employees will be terminated due to lack of work and funds to run the TV news channel and would be hiring them back if they become financially capable to resume of the operations.
It was also stated by the court that if the complainant was a workman in the organisation and had been terminated without following due process of law and it was open for him to initiate proceedings under the relevant provisions before the appropriate forum.
Adding to it, the court stated that he had set the criminal law in motion and that too for the offences under Section 406 and Section 420 of the IPC.
The Court stated that both these offences under Sections 406 and 420 of the IPC which deal with criminal breach of trust and cheating which have their ingredients in Sections 405 and 415 of the IPC respectively and it cannot be seen to be remotely made out in the case at hand.
The court while allowing the petition stated that the case at hand is the one where the termination of the complainant happened pursuant to the losses incurred by the petitioner or the TTC news channel.
Accordingly, the bench stated that the criminal proceedings to be initiated as an alternate method to arm twist the petitioner instead of knocking the doors of an appropriate Court for an appropriate relief and the same cannot be permitted to continue, as the same would result in abuse of the process of law and miscarriage of justice.