In a landmark decision, the Karnataka High Court has dismissed the legal proceedings against Samsung India, absolving the company of alleged violations of the Legal Metrology Act and Packaged Commodities Rules. The ruling came in response to a petition filed by Samsung India, challenging the allegations made by the Inspector of the Department of Legal Metrology. Presiding Judge Sachin Shankar Magadum concluded that the alleged violations only applied to retail packages, not wholesale packages, and that the complaint against Samsung India was driven by malicious intent.

The case centered around the inspection of a Bengaluru-based distributor, ABM Tele Mobiles India Pvt. Ltd., which handles Samsung India's products. The Inspector found that a pre-packaged Samsung Galaxy Tab-4 did not comply with the Legal Metrology (Numeration) Rules, 2011, in relation to the printed Maximum Retail Price (MRP). Additionally, the Inspector alleged a violation of the Packaged Commodities Rules, 2011, due to the absence of the qualifying symbol 'N' on a wholesale packaged product.

The Department of Legal Metrology issued a show cause notice to Samsung India, and despite the company's detailed response, a complaint was lodged against them. Samsung India then approached the Karnataka High Court, arguing that the initiation of the prosecution was illegal and the alleged violations, even if accepted, would not constitute an offense.

Samsung India contended that the Numeration Rules, 2011 did not apply to the price or MRP of packaged goods, but rather to weight, measure, or number as specified in the Metrology Act, 2009. The company stressed that the MRP of pre-packaged goods should adhere to the Packaged Commodities Rules, 2011. On the other hand, the Inspector maintained that the case should be examined during trial proceedings and not under Section 482 of the Criminal Procedure Code.

The Court carefully analyzed the relevant sections of the Metrology Act, 2009, and the Packaged Commodities Rules, 2011. It concluded that the Numeration Rules, 2011 did not pertain to price or MRP, and thus, no offense could be established. The Court highlighted that the regulation of price/MRP for packaged goods fell under the Packaged Commodities Rules, 2011, specifically Rule 2(m). Furthermore, it determined that the absence of the qualifying symbol 'N' only applied to retail packages, not wholesale packages, as governed by Chapter-III of the Packaged Commodities Rules, 2011.

Consequently, the Court found the allegations in the complaint to be baseless and vexatious. It noted that the complaint itself was contradictory and demonstrated a misinterpretation of the relevant laws. The Court concluded that Samsung India had not committed any offense and allowed the petition, quashing the proceedings against the company.

This ruling by the Karnataka High Court is a significant victory for Samsung India, as it clears the company of the alleged violations and highlights the importance of interpreting and applying the law correctly. With this favorable judgment, Samsung India can continue its operations without facing legal repercussions.

Case Title: M/S Samsung India Electronics Pvt. Ltd vs State of Karnataka Case Number
Criminal Petition No. 9771 of 2017