JUDGMENT

SABYASACHI MUKHARJI, J.:— This is a petition for special leave to appeal under Article 136 of the Constitution from the judgment and order dated 8th February, 1985 of the High Court of Delhi. We grant special leave and dispose of this appeal as hereunder,

2. By the judgment and the order impugned, High Court of Delhi under section 482 of the Code of Criminal Procedure, has quashed the complaint as also the summoning order at the instance of the petitioners and the complaint was dismissed.

3. Three petitions arose out of a complaint under section 120B of the Indian Penal Code and section 5 of the Imports and Exports (Control) Act, 1947 (hereinafter called the Act) which had been made by the Deputy Chief Controller of Imports and Exports, Shri J. P. Sharma of which the learned Metropolitan Magistrate, Delhi took cognizance and issued summons against the accused persons. The prosecution had been lodged against Arun Kumar, Ramniklal Mehta, Harshad, M/s. Arun Kumar & Co. a partnership concern of the aforesaid persons also against Shri Vinod Kumar Jain, Shri Rakesh Jain, Ramanand Jain Jagdish Rai Jain, Shri Ram Jain, Swaraja Kumar Jain, Pyarelal Aggarwal, Pyarelal Malhotra, Ashok Kumar, M/s. Jain Sudh Vanaspati Ltd. All the aforesaid persons were at all material time directors and Vinod Kumar Jain was the Managing Director of the company mentioned aforesaid. The allegation was that the accused had entered into a conspiracy to contravene the provisions of the Act.

4. Accused Nos. 2 to 9 in the said complaint were alleged to have entered into a conspiracy to contravene the provisions of section 5 of the Act by participating in the Boards meetings of the company on 28th March, 1983 and 30th June, 1983. By a resolution of the Board of Directors of M/s. Jain Sudh Vanaspati Ltd. (hereinafter called as (J. S. V. L.) dated 28th March, 1983, the Board had resolved pursuant to the order of Delhi High Court dated 16th March, 1983, that New Bank of India, Janpath Branch, New Delhi be requested to issue an irrevocable letter of credit for US Dollars 1,29,60, 613 in favour of M/s. Algula Pvt. Ltd. Singapore (hereinafter called as Alugul) duly supported by a letter of guarantee given by the Punjab National Bank, Chawari Bazar Delhi undertaking to pay on demand all bills drawn under the said letter of credit in the event of failure on their part to pay the same to the extent of Rs. 10 crores. The letter of credit was to be operative for Rs. 10 crores in the first instance in view of letter of guarantee of Punjab National Bank (hereinafter called as PNB) Delhi. Shri Vinod Kumar Jain was alleged to have authorised to sign and execute all documents as would be required by the Bank.

5. In order to appreciate the complaint, it is necessary to understand the background of the complaint. On 13th May, 198 1, M/s. Arun Kumar and Co. applied for import of diamonds unset and uncut for the purpose of re-export of cut and polished diamonds for F. O. B. value of Rs. 10,04,97,000/-. On 2nd June, 1981, it was alleged in the complaint there was in alleged oral agreement entered into between J. S. V. L. and Alugul, not yet then incorporated. On 2nd or 3rd June, 1981, application was made by J. S. V. L. for opening letter of credit. On 5th June, 1981, public notice No. 29-ITC (PN)/81 canalising the import of beef tallow through State Trading Corporation was issued. On 6th June, 1981, there was a written confirmation from Alugul of the alleged contract between J. S. V. L. and Alugul.

6. On 8th June, 1981, the Bank refused to open letter of credit as beef tallow import was allowed only through canalised agency, S. T. C. It is stated that on 26th June, 1981, Alugul was established in Singapore. On 29th June, 1981, Joint Controller of Imports and Exports, Bombay issued imprest licence to M/s. Arun Kumar & Co. for, Rs. 6,53,23,200/- for the import of diamonds unset and uncut with the condition of re-export of cut and polished diamonds for Rs. 10,04,97,000/- within a p