JUDGMENT

B.N. Agrawal, J.-These appeals by special leave have been filed against judgment rendered by Gwalior Bench of Madhya Pradesh High Court whereby two petitions filed under Section 482 of the Code of Criminal Procedure (hereinafter referred to as the Code ) by Respondent Nos. 1 and 3 have been allowed and seizure of stock of kattha and cutch under the provisions of Section 52 of the Indian Forest Act, 1927 ( Act for short) for violation of provisions of rule 3 of Madhya Pradesh Transit (Forest Produce) Rules, 1961 (hereinafter referred to as the Transit Rules ) and the consequent proceedings have been quashed.

2. The short facts are that on 2.5.1988 a truck bearing No. USR-1147 was intercepted by the police near Shinde Police Outpost under Indra Ganj Police Station in the District of Gwalior within the State of Madhya Pradesh and it transpired that 281 cases of kattha manufactured by M/s. Harsh Wood Products (Respondent No.2) were loaded therein at their factory premises, the same having been purchased by M/s. K.S. Finance Corporation (Respondent No.3) without obtaining transit pass as required under rule 3 of the Transit Rules. Thereafter, the matter was reported to the Sub