Authority: Calcutta High Court, Circuit Bench at Port Blair

Order Date: 24 September 2026

Case Overview

  • Parties: Petitioner – Reddy Investments Pvt. Ltd and another; Respondents – Union Territory of Andaman and Nicobar Islands and others, including employees of M/S Jain Industrial Corporation and its associate M/S City Power Solutions Ltd.
  • Proceedings: Petition filed under Article 227 of the Constitution (C.R.R. 24 of 2026) challenging the rejection of a complaint under Section 223(1) of the BNSS Act, 2023 by the Learned Chief Judicial Magistrate (order dated 18‑02‑2025) and its affirmation by the Learned Sessions Judge (order dated 14‑08‑2025).
  • Background:
  • Deed of assignment dated 14/09/2023 transferred sale certificate of scrap, plants, machinery, generators and heavy equipment from M/S Indo Aquaties to petitioner.
  • Mr. Sayyed Iqbal Hussain was engaged on 13/07/2023 to supervise dismantling; his authorization was cancelled on 07/10/2024 and accepted by him on 10/10/2024.
  • Opposite parties (accused No‑2 to No‑5) are employees of M/S Jain Industrial Corporation and M/S City Power Solutions Ltd, Bangalore.
  • Eight tax invoices dated 24/09/2024 were raised in favour of M/S City Power Solutions for export of approximately 134 MT of scrap, amounting to Rs 52 lakhs plus GST, exported between 24/09/2024 and 08/10/2024.
  • On 10‑11 October 2024, the petitioner’s representative, Shri B. Suresh Babu, discovered that approximately 1,065 MT of heavy equipment/scrap was exported from Sri Vijaya Puran to Chennai/Kolkata via private shipper M/S Shakti Shipping Company Ltd without any GST/Tax invoice, without the petitioner’s permission, using forged invoices, causing a loss of Rs 2,45,00,000 plus applicable taxes.
  • Petitioner’s Allegations: Theft and illegal export of scrap material, misuse of forged GST invoices, loss of Rs 2.45 crore, and request for police investigation and recovery of material.
  • Lower Courts’ Findings: The Chief Judicial Magistrate held that no cognizable case was made out and dismissed the complaint as fabricated under Section 173(3) of BNSS Act, 2023; the Sessions Judge affirmed this dismissal.
  • Legal Submissions: Petitioner's counsel argued that the magistrate erred in refusing to exercise power under Section 175(3) to direct police investigation and cited Indian Oil Corporation vs NEPC India Ltd. (2006) 6 SCC 736.

Final Outcome

  • The High Court set aside the orders dated 18‑02‑2025 (Chief Judicial Magistrate) and 14‑08‑2025 (Sessions Judge).
  • It directed the Station Head Officer of Police Station Bambooflat, Andaman and Nicobar Islands, to register an FIR against accused No‑2 to No‑5 and to proceed in accordance with law.
  • The Court clarified that coercive steps against the accused may be taken only with leave of the Magistrate.
  • The petitioners are to serve a copy of this order to the Station Head Officer for necessary action.
  • An urgent certified copy of the order may be obtained by the parties upon compliance with formalities.

Topics: Legal Dispute, Scrap Theft