In Brief
A business owner filed a complaint against a cotton mill's directors alleging fraud, cheating and criminal breach of trust following non-conversion of supplied cotton lint worth over Rs 62 lakhs. The High Court quashed the FIR because the owner had withdrawn an earlier complaint and the matter was commercial. The Supreme Court allowed the appeal, holding that there is no bar to filing a second complaint if the first was not dismissed on merits. The Court found allegations of forgery, dishonest intention and fraud prima facie constitute offences under Section 420 and 409 IPC. The High Court cannot enter the factual arena; such matters require trial evidence. Commercial transactions don't preclude criminal prosecution where dishonesty is alleged.
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