Radhika Shastry & Another … vs State Of Uttarakhand & Another on 16 May, 2025

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Uttarakhand High Court

Radhika Shastry & Another … vs State Of Uttarakhand & Another on 16 May, 2025

                                                                                  2025:UHC:4057


         IN THE HIGH COURT OF UTTARAKHAND
                                       AT NAINITAL
     CRIMINAL MISCELLANEOUS APPLICATION NO. 2883 OF 2019

 Radhika Shastry & Another                                                         ...Applicants

                                                 Versus
 State of Uttarakhand & Another                                                 ...Respondents
                                                 With
     CRIMINAL MISCELLANEOUS APPLICATION NO. 2805 OF 2019
    Mahindra Holidays & Resorts India Limited & Another ..Applicants
                                                   Vs

  State of Uttarakhand & Other                                                 ...Respondents
                                                 With

     CRIMINAL MISCELLANEOUS APPLICATION NO. 2806 OF 2019
      Parthasarthy Vankipuram Srinivasa & Ors.                               ...Applicants

                                                    Vs.

    State of Uttarakhand & Another                                             ...Respondents

Presence:
    Mr. Avtar Singh Rawat, learned senior counsel for the Applicant.
    Mr. Vipin Painuli, learned AGA, for State.
    Mr. Prateek Tripathi, learned counsel for the Respondent.


Hon'ble Ashish Naithani, J.

    1.           These three Criminal Miscellaneous Applications, viz.,
         Criminal Miscellaneous Application No. 2883 of 2019, No. 2805
         of 2019, and No. 2806 of 2019, have been filed under Section
         482 of the Code of Criminal Procedure, 1973. Since the
         applications arise from a common factual matrix and involve

                                                                                                    1
Criminal Misc. Application No. 2883 of 2019, Radhika Shastry & Another Vs State of Uttarakhand and Anr
connected with Criminal Misc. Application No. 2805 of 2019 Mahindra Holidays & Resorts India Limited
& Another Vs State of Uttarakhand and Anr & Criminal Misc. Application No. 2806 of 2019 in
Parthasarathy Vankipuram Srinivasa & Ors. Vs. State of Uttarakhand and Another


                                                                                    Ashish Naithani J.
                                                                                   2025:UHC:4057

         overlapping legal issues, they are being decided by this common
         order.
    2.            The applicants in these connected matters are Ms. Radhika
         Shastry and Mr. Sridar Iyengar, both serving as independent and
         non-executive directors of Mahindra Holidays and Resorts India
         Limited, along with Mahindra Holidays & Resorts India Limited
         & Another, as well as Parthasarthy Vankipuram Srinivasa & Ors.
         The respondents include the State of Uttarakhand through the
         Principal Secretary of the Department of Food and Civil Supply
         Uttarakhand Secretariat, Dehradun, Inspector Legal Metrology,
         and the Controller/Director of Legal Metrology for the
         Government of Uttarakhand.
    3.            The facts leading to the present application are as follows.
         On 18.06.2019, the Legal Metrology Inspector inspected "Bird
         Song", a multi-cuisine restaurant situated within Club Mahindra
         Binsar Valley Resort, which is operated by the applicant
         company. During the inspection, a 250 ml can of Pepsi was
         allegedly sold at Rs. 99.12, which was above the maximum retail
         price (MRP) of Rs. 25 printed on the can. Based on this
         transaction, an inspection report was prepared, and subsequently,
         a show cause notice was issued to the applicant company.
    4.            In response, the company submitted detailed replies dated
         08.07.2019 and 31.07.2019, contending that the resort, including
         its restaurant, functions as part of an integrated hospitality
         service. It was asserted that the sale of beverages within the resort
         premises forms an incidental component of the composite service
         rendered to guests, and therefore, does not fall within the purview



                                                                                                    2
Criminal Misc. Application No. 2883 of 2019, Radhika Shastry & Another Vs State of Uttarakhand and Anr
connected with Criminal Misc. Application No. 2805 of 2019 Mahindra Holidays & Resorts India Limited
& Another Vs State of Uttarakhand and Anr & Criminal Misc. Application No. 2806 of 2019 in
Parthasarathy Vankipuram Srinivasa & Ors. Vs. State of Uttarakhand and Another


                                                                                    Ashish Naithani J.
                                                                                   2025:UHC:4057

         of the Legal Metrology Act, 2009 or the Packaged Commodities
         Rules, 2011.
    5.          Following the inspection, notices were served to the
         company. Upon receiving what the authorities deemed an
         "unsatisfactory explanation" from the applicants, a complaint was
         filed before the Chief Judicial Magistrate, Almora. The
         magistrate subsequently took cognizance of the matter and issued
         a summoning order against the applicants.
    6.          The arguments advanced by learned counsel have been
         heard,and the records perused.
    7.          On behalf of the applicants, it is contended at the outset
         thatthe complaint fails to establish any statutory violation under
         the Legal Metrology Act, 2009, or the Rules framed thereunder.
         Rule 32 of the Legal Metrology (Packaged Commodities) Rules,
         2011, under which cognizance has been taken, is a residuary
         provision prescribing punishment only for contraventions where
         no specific penalty is provided elsewhere in the Rules.
    8.          The summoning order does not identify which provision of
         the Rules has been contravened, nor does it explain how the
         transaction in question, a sale within a resort restaurant, falls
         within the ambit of the Act. The absence of any reference to a
         specific violation demonstrates non-application of mind and
         renders the proceedings liable to be quashed.
    9.          Another contention which the learned counsel for the
         applicants stressed upon is that the doctrine of mala fides and
         abuse of process bars the complaint. Reliance was place on
         Hon'ble Supreme Court Judgement Federation of Hotels and
         Restaurants Association of India vs. Union of India (2018) 2 SCC

                                                                                                    3
Criminal Misc. Application No. 2883 of 2019, Radhika Shastry & Another Vs State of Uttarakhand and Anr
connected with Criminal Misc. Application No. 2805 of 2019 Mahindra Holidays & Resorts India Limited
& Another Vs State of Uttarakhand and Anr & Criminal Misc. Application No. 2806 of 2019 in
Parthasarathy Vankipuram Srinivasa & Ors. Vs. State of Uttarakhand and Another


                                                                                    Ashish Naithani J.
                                                                                   2025:UHC:4057

        97 stating that, the Inspector, Legal Metrology, proceeded with
        the complaint despite being fully aware of the settled legal
        position        under       the Federation judgment,               which        explicitly
        excludes hotels and restaurants from the purview of the Legal
        Metrology Act.
    10.         The deliberate disregard for binding precedent, coupled
        with the suppression of the company's replies, which squarely
        relied on the Federation judgment, demonstrates a malicious
        intent to harass the applicants. This Hon'ble Court has
        consistently held that criminal proceedings initiated with oblique
        motives and in defiance of settled law constitute an abuse of
        process and must be quashed to secure the ends of justice.
    11.         Proceeding further, the learned counsel submitted that the
        complaint is devoid of any averments demonstrating the
        applicants' culpability as directors. Section 49 of the LM Act
        imposes liability on the person in charge of the company's
        business only if the offence was committed with their consent,
        connivance, or due to their negligence. The complaint makes no
        such allegation against the applicants, who are independent and
        non-executive directors with no involvement in the day-to-day
        operations of the resort or its restaurant. The Hon'ble Supreme
        Court in S.M.S. Pharmaceuticals Ltd. v. Neeta Bhalla (2005) 8
        SCC 89 has held that conclusory assertions lacking material
        particulars without specific allegations of active involvement are
        insufficient to prosecute directors. The complaint, being entirely
        silent on this aspect, is legally unsustainable against the
        applicants.



                                                                                                    4
Criminal Misc. Application No. 2883 of 2019, Radhika Shastry & Another Vs State of Uttarakhand and Anr
connected with Criminal Misc. Application No. 2805 of 2019 Mahindra Holidays & Resorts India Limited
& Another Vs State of Uttarakhand and Anr & Criminal Misc. Application No. 2806 of 2019 in
Parthasarathy Vankipuram Srinivasa & Ors. Vs. State of Uttarakhand and Another


                                                                                    Ashish Naithani J.
                                                                                   2025:UHC:4057

    12.          According to the learned counsel for the applicants, the
        summoning order is in direct contravention of the principles laid
        down by the Hon'ble Supreme Court in Pepsi Foods Ltd. v.
        Special Judicial Magistrate (1998) 5 SCC 749, which mandates
        that a Magistrate must apply a judicial mind before summoning
        an accused. The order dated 05.12.2019 is a mechanical
        reproduction of the complaint's allegations, without any
        independent assessment of whether a prima facie case exists. The
        Trial Court failed to consider the legal submissions made by the
        company in its replies, which were crucial to determining the
        applicability of the LM Act. Such a perfunctory exercise of
        jurisdiction vitiates the summoning order and warrants its setting
        aside.
    13.          The learned counsel then proceeded to argue that
        procedural irregularities vitiate the proceedings. The Trial Court
        did not conduct an inquiry under Section 202 Cr.P.C. despite the
        accused residing outside its territorial jurisdiction. Furthermore,
        the complainant was not examined on oath under Section 200
        Cr.P.C., which is a mandatory safeguard against frivolous
        complaints. These lapses render the proceedings illegal and
        unsustainable.
    14.          The learned advocate would submit that the complaint is an
        attempt to criminalise what is, at best, a civil or regulatory
        dispute. The alleged overcharging, if at all, does not constitute a
        criminal offence under the LM Act, given the inapplicability of
        the Act to resort restaurants. The Hon'ble Supreme Court
        in Indian Oil Corp. v. NEPC India Ltd. (2006) 6 SCC 736 has
        cautioned against using criminal proceedings to arm-twist parties

                                                                                                    5
Criminal Misc. Application No. 2883 of 2019, Radhika Shastry & Another Vs State of Uttarakhand and Anr
connected with Criminal Misc. Application No. 2805 of 2019 Mahindra Holidays & Resorts India Limited
& Another Vs State of Uttarakhand and Anr & Criminal Misc. Application No. 2806 of 2019 in
Parthasarathy Vankipuram Srinivasa & Ors. Vs. State of Uttarakhand and Another


                                                                                    Ashish Naithani J.
                                                                                   2025:UHC:4057

        in commercial matters. The present complaint is a classic
        example of such misuse and warrants quashing to uphold judicial
        integrity.
    15.         In light of the above, the applicants pray for the quashing of
        the criminal complaint and the summoning order to prevent
        miscarriage of justice and abuse of the legal process. The
        proceedings are devoid of merit, contrary to settled law, and
        unsustainable both on factual and legal grounds.
    16.         Countering the petitioner's claim, it is argued on behalf of
        the respondent State and Legal Metrology Department that the
        present proceedings are legally valid and justified. They contend
        that the transaction in question constitutes a clear violation of the
        Legal Metrology Act, 2009 and the Packaged Commodities
        Rules, 2011. The sale of the Pepsi can at a price exceeding the
        Maximum Retail Price (MRP) falls squarely within the definition
        of "retail sale" under Rule 2(l) of the Rules.
    17.         The respondents argue that the statutory provisions clearly
        cover the transaction, citing the comprehensive definition of "pre-
        packaged commodity" under Section 2(j) of the Act. The Pepsi
        can, sold at Bird Song restaurant, undisputedly qualifies as a pre-
        packaged commodity with a declared MRP. Rule 18(2) of the
        Packaged Commodities Rules imposes an absolute prohibition
        against selling any pre-packaged commodity above MRP, with
        no exception for hospitality establishments.
    18.         The respondents sought to demonstrate that the Federation
        judgment relied upon by the applicants is inapplicable. That case
        dealt specifically with packaged drinking water in the context of
        composite contracts in hotel settings.

                                                                                                    6
Criminal Misc. Application No. 2883 of 2019, Radhika Shastry & Another Vs State of Uttarakhand and Anr
connected with Criminal Misc. Application No. 2805 of 2019 Mahindra Holidays & Resorts India Limited
& Another Vs State of Uttarakhand and Anr & Criminal Misc. Application No. 2806 of 2019 in
Parthasarathy Vankipuram Srinivasa & Ors. Vs. State of Uttarakhand and Another


                                                                                    Ashish Naithani J.
                                                                                   2025:UHC:4057

    19.         The respondents emphasized that the present matter
        pertains to the sale of carbonated beverages, wherein the service
        component is negligible. They submit that judicial precedents
        mandate an evaluation of the dominant nature of the transaction
        to determine its legal character. In the instant case, the sale in
        question was effected to a walk-in customer at the restaurant,
        unconnected to any bundled hospitality service or composite
        hotel package. It is thus a standalone retail transaction, squarely
        falling within the regulatory ambit of the Legal Metrology
        framework.
    20.         The respondent further distinguishes the Taj Kerala Hotels
        & Resorts Limited vs. Union of India (2013) 3 KLT 426 case,
        highlighting that it involved room service to in-house guests. In
        contrast, the present transaction was a standalone retail sale to a
        non-resident customer. The 2017 Amendment to the Legal
        Metrology          Rules       removed         ambiguity          about       the     Act's
        applicability to hospitality sectors, affirming that such sales are
        regulated.
    21.         The respondents present a robust argument on directors'
        liability, relying on Section 49 of the LM Act, which explicitly
        includes all directors within its ambit, with no exemption for
        independent or non-executive directors. They argue that the
        complaint contains specific allegations regarding the directors'
        responsibility to ensure compliance with the Act. A statutory
        presumption of liability is created by Section 49(1), and the
        burden shifts to the directors to prove that the offence occurred
        without their knowledge or despite due diligence. The applicants
        have not discharged this burden at this preliminary stage.

                                                                                                    7
Criminal Misc. Application No. 2883 of 2019, Radhika Shastry & Another Vs State of Uttarakhand and Anr
connected with Criminal Misc. Application No. 2805 of 2019 Mahindra Holidays & Resorts India Limited
& Another Vs State of Uttarakhand and Anr & Criminal Misc. Application No. 2806 of 2019 in
Parthasarathy Vankipuram Srinivasa & Ors. Vs. State of Uttarakhand and Another


                                                                                    Ashish Naithani J.
                                                                                   2025:UHC:4057

    22.         Board resolutions reveal the applicants' participation in
        approving pricing policies, including ratifying the menu with
        inflated prices. The applicants have not demonstrated any
        concrete steps to ensure legal compliance, despite their statutory
        obligations.
    23.         The respondents defend the summoning order dated
        05.12.2019, asserting that the Ld. The Chief Judicial Magistrate
        applied the judicial mind appropriately. They emphasise that at
        the summoning stage, the court only needs to determine whether
        a prima facie case exists, not conduct a mini-trial. The complaint
        included the inspection report, photographic evidence, the
        purchase receipt showing overcharging, the notice to the
        company, and the company's reply.
    24.         The respondents assert that all mandatory procedures were
        duly followed. The inspection on 18.06.2019 was part of routine
        enforcement. A show cause notice was issued on 26.06.2019,
        followed by a personal hearing on 15.07.2019. The complaint
        was filed on 23.10.2019 after considering the company's reply.
        Any delay in filing was due to procedural fairness. The
        respondents denied any bad faith, explaining that any document
        omissions were inadvertent and did not vitiate the proceedings.
        They maintain that such irregularities are curable and have not
        caused any prejudice.
    25.         The respondents tried to establish jurisdiction under
        Section 177 CrPC. The entire cause of action arose within the
        jurisdiction of the Almora court, where the resort is located,
        where the inspection occurred, and where the alleged



                                                                                                    8
Criminal Misc. Application No. 2883 of 2019, Radhika Shastry & Another Vs State of Uttarakhand and Anr
connected with Criminal Misc. Application No. 2805 of 2019 Mahindra Holidays & Resorts India Limited
& Another Vs State of Uttarakhand and Anr & Criminal Misc. Application No. 2806 of 2019 in
Parthasarathy Vankipuram Srinivasa & Ors. Vs. State of Uttarakhand and Another


                                                                                    Ashish Naithani J.
                                                                                   2025:UHC:4057

        overcharging took place. The fact that the accused resides outside
        the jurisdiction is immaterial to the court's authority.
    26.          The respondents contend that permitting arbitrary pricing
        of standard pre-packaged commodities within hospitality settings
        would significantly dilute the integrity of the Maximum Retail
        Price (MRP) regime and undermine the statutory mandate of
        consumer protection. They assert that the regulatory action
        undertaken in the present case reinforces the foundational
        objective of ensuring transparency, preventing unfair trade
        practices, and upholding uniform pricing norms applicable across
        retail     environments,           irrespective        of     the     nature      of     the
        establishment.
    27.          The Court has examined the application filed by Mahindra
        Holidays and Resorts India Ltd., wherein the company seeks
        quashing of proceedings initiated under the Legal Metrology Act,
        2009 and the Packaged Commodities Rules, 2011. The
        application challenges the notice issued by the Legal Metrology
        Department on the basis of a consumer complaint alleging that
        Mahindra Resorts distributed welcome kits without the
        mandatory declarations prescribed under Rule 6, thereby
        violating Section 18 of the Act. The applicant's primary
        contention is that it does not deal with the sale of pre-packaged
        commodities but provides services through holiday memberships.
        Therefore, the provisions of the Act are inapplicable.
    28.          The foundational premise of the applicants' case rests on
        the settled legal position that the provisions of the Legal
        Metrology Act, 2009 (LM Act) and the Legal Metrology
        (Packaged Commodities) Rules, 2011 (Rules) do not apply to

                                                                                                    9
Criminal Misc. Application No. 2883 of 2019, Radhika Shastry & Another Vs State of Uttarakhand and Anr
connected with Criminal Misc. Application No. 2805 of 2019 Mahindra Holidays & Resorts India Limited
& Another Vs State of Uttarakhand and Anr & Criminal Misc. Application No. 2806 of 2019 in
Parthasarathy Vankipuram Srinivasa & Ors. Vs. State of Uttarakhand and Another


                                                                                    Ashish Naithani J.
                                                                                   2025:UHC:4057

        establishments such as hotels, resorts, and restaurants. The
        Hon'ble Supreme Court in Federation of Hotels and Restaurants
        Association of India vs. Union of India (2018) 2 SCC 97 has
        unequivocally held that the offer of food and beverages in such
        establishments constitutes a composite service, wherein the
        service element predominates, and thus falls outside the purview
        of the LM Act. The Court categorically observed that transactions
        in hotels and restaurants involve an indivisible contract of
        service, making the sale of packaged commodities incidental to
        the larger service provided. This principle has been consistently
        upheld by various High Courts, including the Delhi High Court
        in Delhi Gymkhana Club Limited vs. Union of India 2009 (112)
        DRJ 123 and the Kerala High Court in Taj Kerala Hotels &
        Resorts Limited vs. Union of India (2013) 3 KLT 426, which
        extended this logic to clubs and resorts, affirming that such
        entities are entitled to price their offerings above the printed
        MRP.
    29.         However, upon scrutiny of the records and arguments
        advanced, the Court finds that the transaction between the
        complainant and the company cannot be viewed in abstraction
        from the physical components involved. While it is true that
        Mahindra Holidays promotes itself as a service provider offering
        vacation memberships, it is equally apparent from the documents
        on record that physical materials, specifically a welcome kit,are
        delivered to customers as part of the contract. This welcome kit is
        not merely symbolic; it contains promotional literature, a
        membership card, documents of terms and conditions, and other
        packaged elements which are handed over or couriered to the

                                                                                                  10
Criminal Misc. Application No. 2883 of 2019, Radhika Shastry & Another Vs State of Uttarakhand and Anr
connected with Criminal Misc. Application No. 2805 of 2019 Mahindra Holidays & Resorts India Limited
& Another Vs State of Uttarakhand and Anr & Criminal Misc. Application No. 2806 of 2019 in
Parthasarathy Vankipuram Srinivasa & Ors. Vs. State of Uttarakhand and Another


                                                                                    Ashish Naithani J.
                                                                                   2025:UHC:4057

        consumer. These items are visibly and physically packaged and
        form a part of the commercial transaction, which brings them
        within the purview of the Legal Metrology (Packaged
        Commodities) Rules, 2011.
    30.         The definition of a "pre-packaged commodity" under
        Section 2(l) of the Legal Metrology Act includes any commodity
        which, without the purchaser being present, is placed in a
        package of whatever nature, whether sealed or not, so that the
        product contained therein has a predetermined quantity. It is
        immaterial whether the said item is sold in isolation or as a
        component of a broader offering.
    31.         The Court notes that in this case, the welcome kit and its
        contents were neither excluded from the commercial value of the
        transaction nor marked as gratuitous. They form a part of the
        offering extended to the consumer in exchange for monetary
        consideration, and thus, cannot be isolated from statutory
        scrutiny.
    32.         Moreover, the Packaged Commodities Rules are consumer-
        welfare legislation, and a liberal interpretation must be accorded
        to serve the objectives of transparency and protection against
        unfair trade practices. A consumer, upon receiving a package that
        forms part of a paid transaction, is entitled to the basic
        information prescribed under Rule 6, such as the name and
        address of the manufacturer/packer/importer, net quantity, MRP,
        date of manufacture, and customer care details. In the present
        case, the complainant has categorically stated that the package
        received did not contain such disclosures, and the applicants have
        not refuted this fact with any substantive evidence. Instead, it has

                                                                                                  11
Criminal Misc. Application No. 2883 of 2019, Radhika Shastry & Another Vs State of Uttarakhand and Anr
connected with Criminal Misc. Application No. 2805 of 2019 Mahindra Holidays & Resorts India Limited
& Another Vs State of Uttarakhand and Anr & Criminal Misc. Application No. 2806 of 2019 in
Parthasarathy Vankipuram Srinivasa & Ors. Vs. State of Uttarakhand and Another


                                                                                    Ashish Naithani J.
                                                                                   2025:UHC:4057

        attempted to shield its obligations by characterizing the welcome
        kit as a service accessory, which the Court finds unacceptable
        and evasive.
    33.         It is also pertinent to observe that the scope of the Legal
        Metrology Act is not limited to traditional consumer goods sold
        over the counter. The legislative intent clearly includes within its
        fold any material that reaches the consumer in packaged form,
        especially where consideration is paid. The welcome kit, in this
        case, was not sent as a courtesy or promotional sample, but was
        integral to the fulfilment of the service agreement and forms part
        of the transaction. The company cannot distance itself from the
        packaging standards merely by labelling its business as "service-
        based," especially when physical goods are part of the contracted
        deliverables.
    34.         The Court further notes that the applicant's attempt to treat
        the Legal Metrology notice as misconceived and issued without
        jurisdiction appears to be premature. The Legal Metrology
        Officer, as a statutory authority, has the power to issue notices
        and seek explanations based on consumer complaints. The
        applicants were afforded the opportunity to respond to the notice,
        and the proceedings were still at a preliminary stage. Invoking
        writ jurisdiction or seeking judicial intervention at this nascent
        stage amounts to an abuse of process and undermines the purpose
        of administrative scrutiny.
    35.         The challenge to the summoning order reveals a
        fundamental misunderstanding of the evidentiary threshold
        required at the preliminary stage. The Magistrate's order
        demonstrates proper application of mind by explicitly referencing

                                                                                                  12
Criminal Misc. Application No. 2883 of 2019, Radhika Shastry & Another Vs State of Uttarakhand and Anr
connected with Criminal Misc. Application No. 2805 of 2019 Mahindra Holidays & Resorts India Limited
& Another Vs State of Uttarakhand and Anr & Criminal Misc. Application No. 2806 of 2019 in
Parthasarathy Vankipuram Srinivasa & Ors. Vs. State of Uttarakhand and Another


                                                                                    Ashish Naithani J.
                                                                                   2025:UHC:4057

        the inspection report, the documentary evidence of overcharging,
        and the company's response. The detailed recording of these
        materials in the summoning order satisfies the requirements laid
        down in Neeharika Infrastructure and other precedents governing
        the standard of scrutiny at this stage.
    36.         Significantly, the Court cannot ignore the broader public
        interest implications of this case. The MRP regime serves critical
        consumer protection objectives by ensuring price transparency
        and preventing arbitrary pricing in retail markets. The legislative
        framework deliberately imposes strict standards to maintain
        uniformity and fairness in packaged commodity sales across all
        retail environments. Hospitality establishments have ample
        opportunity to legitimately recover service costs through properly
        disclosed service charges rather than by circumventing MRP
        regulations.
    37.         Furthermore,           the     Court      observes        that     the     present
        applications represent a premature challenge to ongoing criminal
        proceedings.
    38.         On the issue of directors' liability, while it is true that
        S.M.S. Pharmaceuticals Ltd. (supra)requires specific allegations
        against directors, Section 49(1) of the LM Act creates a statutory
        presumption of liability. The petitioners' contention regarding
        their non-executive roles raises factual questions that require
        evidence-led examination at the trial stage. At this juncture, no
        case for quashing is made out. The applicants have not
        demonstrated any exceptional circumstances that would justify
        interference at this nascent stage.



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Criminal Misc. Application No. 2883 of 2019, Radhika Shastry & Another Vs State of Uttarakhand and Anr
connected with Criminal Misc. Application No. 2805 of 2019 Mahindra Holidays & Resorts India Limited
& Another Vs State of Uttarakhand and Anr & Criminal Misc. Application No. 2806 of 2019 in
Parthasarathy Vankipuram Srinivasa & Ors. Vs. State of Uttarakhand and Another


                                                                                    Ashish Naithani J.
                                                                                   2025:UHC:4057

    39.         All defences available to the applicants, including those
        relating to the applicability of the Legal Metrology Act and their
        individual liability, are matters best left for adjudication during
        trial, where a full appreciation of facts and evidence can take
        place. The inherent jurisdiction under Section 482 CrPC, being
        exceptional in nature, cannot be employed to pre-empt or short-
        circuit the statutory process of criminal adjudication at such an
        incipient stage.
    40.         In light of the foregoing analysis, this Court is not
        persuaded to accept the applicants' prayer for quashing the
        proceedings. The transaction under scrutiny, pertaining to the sale
        of a pre-packaged Pepsi can at a price exceeding the declared
        Maximum Retail Price, is one that prima facie falls within the
        ambit of the Legal Metrology Act, 2009 and the Legal Metrology
        (Packaged Commodities) Rules, 2011. The argument that the sale
        was part of a composite hospitality service is untenable in the
        present factual matrix, where the packaged commodity was sold
        independently and for distinct consideration, thereby attracting
        the statutory obligations prescribed under the Act.
    41.         This Court is further guided by the principles laid down in
        Neeharika Infrastructure Pvt. Ltd. v. State of Maharashtra,
        (2021) 6 SCC 516, which caution against premature interference
        under Section 482 CrPC, except in cases where the complaint is
        manifestly frivolous or malicious. No such exceptional
        circumstance exists herein. The presumption under Section 49 of
        the Legal Metrology Act, 2009, raises a statutory inference of
        director liability, rebuttable only by concrete evidence--an
        exercise appropriate for trial, not at the threshold.

                                                                                                  14
Criminal Misc. Application No. 2883 of 2019, Radhika Shastry & Another Vs State of Uttarakhand and Anr
connected with Criminal Misc. Application No. 2805 of 2019 Mahindra Holidays & Resorts India Limited
& Another Vs State of Uttarakhand and Anr & Criminal Misc. Application No. 2806 of 2019 in
Parthasarathy Vankipuram Srinivasa & Ors. Vs. State of Uttarakhand and Another


                                                                                    Ashish Naithani J.
                                                                                   2025:UHC:4057

    42.         Furthermore, consumer protection legislations must receive
        a purposive interpretation, and the MRP regime must be enforced
        rigorously to preserve transparency in trade. The applicants' plea
        to shield themselves behind service nomenclature, while
        physically delivering a commercial packaged good, cannot be
        countenanced in law.
                                                  ORDER

Accordingly, all three applications stand dismissed.
The applicants are, however, at liberty to raise all
contentions available to them in law before the learned trial court
in accordance with law.

(Ashish Naithani, J.)

Dated:16.05.2025

15
Criminal Misc. Application No. 2883 of 2019, Radhika Shastry & Another Vs State of Uttarakhand and Anr
connected with Criminal Misc. Application No. 2805 of 2019 Mahindra Holidays & Resorts India Limited
& Another Vs State of Uttarakhand and Anr & Criminal Misc. Application No. 2806 of 2019 in
Parthasarathy Vankipuram Srinivasa & Ors. Vs. State of Uttarakhand and Another

Ashish Naithani J.



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