High Court quashes FIR for certain IPC offences, allows investigation under IT and Copyright Acts.

The High Court quashed the FIR concerning offences under Sections 409, 420, and 120B of IPC but permitted the investigation to continue for offences under Section 65 of the Information Technology Act and Section 63 of the Copyright Act. The CID Police were instructed to conclude the investigation and submit a final report within three months, leading to the dismissal of the criminal petitions.

---

---

Issues Involved:
1. Quashing of FIR No. 20 of 2003.
2. Allegations under Sections 409, 420, and 120B of IPC.
3. Allegations under Section 65 of the Information Technology Act, 2000.
4. Allegations under Section 63 of the Copyright Act, 1957.

Issue-wise Detailed Analysis:

1. Quashing of FIR No. 20 of 2003:
The petitioners sought relief under Section 482 of the Code of Criminal Procedure, 1973, to quash FIR No. 20 of 2003 registered by the Criminal Investigation Department (CID) Police, Hyderabad. The FIR was based on a complaint by the Head of Sales and Marketing Wing of Reliance Infocomm Ltd., alleging unethical practices by rival service providers to woo their customers. The High Court admitted both petitions and stayed further proceedings, including the investigation, pending the disposal of the main petition.

2. Allegations under Sections 409, 420, and 120B of IPC:
The petitioners, employees of Tata Tele Services Limited (TTSL), were accused of criminal breach of trust, cheating, and conspiracy. The court found that the allegations did not constitute an offence under Section 409 (criminal breach of trust) or Section 420 (cheating) of IPC. There was no evidence of dishonest appropriation or fraudulent inducement. Consequently, the charge under Section 120B (criminal conspiracy) of IPC, which is related to the alleged offences under Sections 409 and 420, was also deemed misconceived. The court held that the FIR did not disclose the commission of cognizable offences under these sections, justifying the quashing of the investigation related to these charges.

3. Allegations under Section 65 of the Information Technology Act, 2000:
The petitioners were also accused of tampering with computer source documents under Section 65 of the IT Act. The court analyzed the definitions of "computer," "computer system," and "computer network" under the IT Act and concluded that a cell phone, being a programmable device capable of data processing, falls under these definitions. The court noted that altering the Electronic Serial Number (ESN) of the cell phones, which are integral to the service provided by Reliance Infocomm, constituted tampering with computer source code. The court rejected the argument that there was no law requiring the maintenance of computer source code, emphasizing that the second respondent was indeed maintaining such code. Therefore, the court held that the allegations prima facie made out an offence under Section 65 of the IT Act, and the investigation could not be quashed.

4. Allegations under Section 63 of the Copyright Act, 1957:
The court examined the allegations under Section 63 of the Copyright Act, which deals with the infringement of copyright in computer programs. The court noted that the Copyright Act, as amended in 1995, includes computer programs as literary works protected by copyright. The court held that altering the computer program (source code) of the cell phones supplied by Reliance Infocomm could constitute an infringement of copyright. The court emphasized that this issue would be subject to evidence presented during the trial. Consequently, the court did not quash the investigation related to this charge.

Conclusion:
The High Court quashed the FIR insofar as it related to offences under Sections 409, 420, and 120B of IPC, but allowed the investigation to proceed regarding offences under Section 65 of the Information Technology Act and Section 63 of the Copyright Act. The CID Police were directed to complete the investigation and file a final report within three months. The criminal petitions were dismissed accordingly.

---