S CHOKALINGAM Vs. STATE

JUDGEMENT

(1.) THE petition is filed seeking quashment of the First information Report registered in Crime No. 54 of 2005 on the file of the first respondent. THE petitioners have been arraigned as accused 2 to 13 in Crime no. 54 of 2005 on the file of the first respondent for the offences under sections 420, 409 and 34 of the Indian Penal Code.

(2.) THE allegation found in the complaint is that the accused purchased cotton lint weighing about 47,164 kgs which is worth rs. 26,93,289/- on credit basis. THE remaining cotton lint weighing about 61,756 kgs worth Rs. 35,26,561. 69 had been entrusted to the accused for conversion into yarn. THE further allegation is that the first accused Mill did not take any steps for converting the cotton lint into yarn despite the repeated request made by the complainant. THE serious allegation made in the complaint is that all the accused with the common intention jointly sold away the total cotton lint weighing about 1,08,920/- kgs worth Rs. 62,19,850. 69 to a third party. Having thus sold the cotton lint without converting the same into yarn as agreed, the accused have committed criminal breach of trust and also cheated by selling away the goods of the complainant. THE sale proceeds of the cotton lint were used for personal purpose by the accused.

(3.) IN the first complaint which was given by the complainant as early as on 20. 5. 2004, the complainant has specifically stated that there was an oral agreement between the complainant and the first accused that when the complainant supplied cotton lint to the first accused company, the first accused company was bound to pay back either in cash or in yarn on conversion. A memorandum of undertaking had been entered into between the said parties on 31. 1. 2002 where-under the first accused had undertaken to convert cotton lint into yarn and send the same to the complainant and the complainant was bound to pay charges for conversion to the first accused company.