Data Theft 482915

-1-
NC: 2023:KHC:24150
CRL.P No. 3173 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 12TH DAY OF JULY, 2023
BEFORE
THE HON'BLE MR JUSTICE M.NAGAPRASANNA
CRIMINAL PETITION NO. 3173 OF 2023
BETWEEN:
1. NAVEEN KUMAR R @ NAVEEN

S/O G.RAMA KRISHNA
AGED ABOUT 32 YEARS
RESIDING AT NO.26
1ST MAIN, 1ST CROSS
NEAR GALI ANJENEYASWAMY TEMPLE
KAVIKA LAYOUT
MYSORE ROAD
BENGALURU – 560 026.
2. SHRUTHI B.S. @ SRUTHI

C/O NAVEEN KUMAR R.,
AGED ABOUT 32 YEARS
Digitally signed by RESIDNG AT NO.26
PADMAVATHI B K 1ST MAIN, 1ST CROSS
Location: HIGH NEAR GALI ANJENEYASWAMY TEMPLE
COURT OF
KARNATAKA KAVIKA LAYOUT
MYSORE ROAD
…PETITIONERS
(BY SRI SIJI MALAYIL., ADVOCATE)
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NC: 2023:KHC:24150
CRL.P No. 3173 of 2023
AND:
1. STATE OF KARNATAKA BY
SOUTH CEN CRIME POLICE STATION
REPRESENTED BY
SPECIAL PUBLIC PROSECUTOR
HIGH COURT BUILDING
2. YUVARAJ SELVARAJ
DIRECTOR EOX VANTAGE
GREY ROCK NO.10,
24TH MAIN,
J.P.NAGAR 1ST PHASE
…RESPONDENTS
(BY SRI MAHESH SHETTY, HCGP FOR R-1;
SRI ARUN SHYAM, SR.COUNSEL FOR
SRI NARAYAN BABU D.N., ADVOCATES FOR R-2)
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482

OF CR.P.C., PRAYING TO QUASH THE FIR IN CR.NO.235/2023
BY RESPONDENT NO.1 POLICE SOUTH CEN CRIME POLICE
STATION BENGALURU FOR THE OFFENCE P/U/S.408, 504, 506
OF IPC AND SEC.66 AND 66-C OF IT ACT PENDING ON THE
FILES OF Ld. I ADDITIONAL CHIEF METROPOLITAN
MAGISTRATE COURT, BENGALURU.
THIS CRIMINAL PETITION, COMING ON FOR HEARING

ON I.A., THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER
Petitioners are before this Court calling in question
registration of a crime in Crime No.235 of 2023 for offences

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NC: 2023:KHC:24150
CRL.P No. 3173 of 2023
punishable under Sections 408, 504, 506 of the IPC and under
Sections 66 and 66C of the Information Technology Act, 2008.
2. Heard Sri Siji Malayil, learned counsel appearing for
petitioners, Sri Mahesh Shetty, learned High Court Government
Pleader appearing for respondent No.1 and Sri. Arun Shyam,
learned senior counsel appearing for respondent No.2.
3. Though the matter is listed for orders, with the consent
of the parties it is taken up for the final disposal.
4. Facts in brief germane are as follows:
The 2nd respondent is the complainant. The petitioners
are accused Nos.2 and 3, who were erstwhile employees of the
Company by name EOX Vantage (‘Company’ for short). The
petitioners are said to have left the employment on
02.11.2022 and 28.07.2022 respectively. After the exit of the
petitioners from the complainant/Company, the Company
appears to have undertaken certain investigation which would
reveal that the petitioners have stolen data from the Company
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NC: 2023:KHC:24150
CRL.P No. 3173 of 2023
and are now working with a rival Company by name Conscala,
established by accused No.1.
5. On the allegation that the petitioners have violated the
non-disclosure agreement and have taken away all the
necessary data of the clients of the Company and used the said
information in the rival Company, the complainant company
institutes certain civil proceedings seeking injunction against
usage of the data stolen in O.S.Nos.3154 of 2023, 3156 of
2023 and the concerned Court has granted temporary
injunction against the petitioners.
6. The complainant even before approaching the Civil
Court had registered a complaint before the jurisdictional police
on the ground that the data belonging to the Company had
been thieved by the petitioners along with others which
becomes a crime in crime No.235 of 2023 for the afore-quoted
offences. The crime is registered on 25.02.2023 and the
subject petition is preferred on 05.04.2023, this Court had
granted an interim order which has resulted in the investigation
not being conducted against the petitioners.

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NC: 2023:KHC:24150
CRL.P No. 3173 of 2023
7. Learned counsel appearing for petitioners would
contend that there is no material whatsoever to allege the
offences punishable under Sections 408, 504, 506 of the IPC or
even under Section 66 or 66C of the Information Technology
Act. Without there being any material, the complaint is
registered, which would only be a harassment to the petitioners
to face investigation, without any allegation. Learned counsel
would further contend that what is alleged is thieving of client
data. The client data is already in the public domain and is
noticeable on the link of linkedin. Therefore, learned counsel
would submit that the registration of crime in Crime No.235 of
2023 requires to be quashed.
8. Learned senior counsel Sri.Arun Shyam representing
the 2nd respondent would refute the submissions to contend
that we have only registered the complaint, but the product of
investigation i.e., the final report is yet to be filed, as there are
grave allegations which would become ingredients of the
offences as alleged against the petitioners under Section 66

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CRL.P No. 3173 of 2023
and 66C of the Information Technology Act, 2008. He would
seek dismissal of the petition.
9. Learned High Court Government Pleader would toe the
lines of the learned senior counsel for the 2nd respondent that
the matter requires to be investigated into.
10. I have given my anxious consideration to the
submissions made by the respective learned counsel and have
perused the material on record.
11. The afore-narrated facts are not in dispute. The issue
lies in a narrow compass. It is not in dispute that the
petitioners/accused Nos.2 and 3 were employees of the
complainant/Company EOX Vantage. They leave the Company
on 02.11.2022 and 28.07.2022 respectively. After the exit of
the petitioners, an internal investigation is said to have been
conducted and the report of which is appended to the
statement of objections. Those documents would prima facie
indicate that there has been some foul play by the petitioners
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NC: 2023:KHC:24150
CRL.P No. 3173 of 2023
prior to they resigning from the Company, from their respective
posts.
12. The allegation against the petitioners is that they
have been thieving all the data belonging to the clients of the
complainant/Company and using it for the purpose of
development of business of the rival Company and have
therefore, violated the non-disclosure agreement of the
Company, which would become an offence as alleged for the
aforesaid offences. Even otherwise, the crime is registered on
25.02.2023 and there has been an interim order which has
stalled further investigation. Data thieving has become a
menace in these digital days and will have to be nipped. The
case at hand forms one such illustration and is shrouded with
seriously disputed questions of fact. Therefore, I find no merit
to interfere at this stage of the proceedings.
13. Accordingly, petition stands rejected, reserving liberty
to the petitioners to avail of such remedy, as is available in law
at the appropriate time.

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NC: 2023:KHC:24150
CRL.P No. 3173 of 2023
Consequently, I.A.No.2 of 2023 also stands disposed.
Sd/-
JUDGE
BKP
List No.: 1 Sl No.: 52

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-1-

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 12TH DAY OF JULY, 2023

1. NAVEEN KUMAR R @ NAVEEN

2. SHRUTHI B.S. @ SRUTHI

THIS CRIMINAL PETITION IS FILED UNDER SECTION 482

THIS CRIMINAL PETITION, COMING ON FOR HEARING

Petitioners are before this Court calling in question

registration of a crime in Crime No.235 of 2023 for offences

Sections 66 and 66C of the Information Technology Act, 2008.

2. Heard Sri Siji Malayil, learned counsel appearing for

petitioners, Sri Mahesh Shetty, learned High Court Government

Pleader appearing for respondent No.1 and Sri. Arun Shyam,

learned senior counsel appearing for respondent No.2.

3. Though the matter is listed for orders, with the consent

of the parties it is taken up for the final disposal.

4. Facts in brief germane are as follows:

The 2nd respondent is the complainant. The petitioners

are accused Nos.2 and 3, who were erstwhile employees of the

Company by name EOX Vantage (‘Company’ for short). The

petitioners are said to have left the employment on

02.11.2022 and 28.07.2022 respectively. After the exit of the

petitioners from the complainant/Company, the Company

appears to have undertaken certain investigation which would

and are now working with a rival Company by name Conscala,

established by accused No.1.

5. On the allegation that the petitioners have violated the

non-disclosure agreement and have taken away all the

information in the rival Company, the complainant company

institutes certain civil proceedings seeking injunction against

usage of the data stolen in O.S.Nos.3154 of 2023, 3156 of

2023 and the concerned Court has granted temporary

injunction against the petitioners.

6. The complainant even before approaching the Civil

Court had registered a complaint before the jurisdictional police

on the ground that the data belonging to the Company had

been thieved by the petitioners along with others which

becomes a crime in crime No.235 of 2023 for the afore-quoted

offences. The crime is registered on 25.02.2023 and the

subject petition is preferred on 05.04.2023, this Court had

granted an interim order which has resulted in the investigation

not being conducted against the petitioners.

7. Learned counsel appearing for petitioners would

contend that there is no material whatsoever to allege the

offences punishable under Sections 408, 504, 506 of the IPC or

even under Section 66 or 66C of the Information Technology

Act. Without there being any material, the complaint is

registered, which would only be a harassment to the petitioners

to face investigation, without any allegation. Learned counsel

would further contend that what is alleged is thieving of client

data. The client data is already in the public domain and is

noticeable on the link of linkedin. Therefore, learned counsel

would submit that the registration of crime in Crime No.235 of

2023 requires to be quashed.

8. Learned senior counsel Sri.Arun Shyam representing

the 2nd respondent would refute the submissions to contend

that we have only registered the complaint, but the product of

investigation i.e., the final report is yet to be filed, as there are

grave allegations which would become ingredients of the