In Brief
The appellant, a cotton trader, alleged that a cotton mill and its officials defrauded him by selling cotton lint supplied for conversion rather than processing it, causing loss of over Rs 62 lakhs. The High Court quashed the criminal case citing the appellant's earlier withdrawn complaint and the commercial nature of the dispute. The Supreme Court held that a second complaint is permissible even after withdrawal of the first, provided the first was not dismissed on merits. The Court emphasised that the High Court cannot quash proceedings merely because allegations relate to a commercial transaction; it must confine itself to checking whether allegations prima facie constitute a criminal offence. The Court found the allegations of fraud, forgery and breach of trust sufficiently disclosed offences under Sections 420, 409 and 34 IPC, reversing the High Court's order."
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