JUDGMENT

NATARAJAN, J :— Special Leave granted.

2. This appeal by special leave is directed against an order of the High Court of Karnataka under Sec. 482 Criminal Procedure Code (for short the Code) setting aside the order of the Second Additional Chief Metropolitan Magistrate, Bangalore directing the registration of a calendar case against the second respondent under Sections 408 and 420 of the Indian Penal Code and the issue of summons to him under Section 204 of the Code.

3. So far as the facts are concerned, they are as follows. The appellant gave a report to the Commissioner of Police, Bangalore on 20-2-1980 against the second respondent alleging that he had committed the offences of cheating and criminal breach of trust. It was averred that the second respondent, was its Divisional Manager (Export-Import) and had negotiated on its behalf with an Italian firm in July 1979 for supply of quality granite stones and had obtained a letter of credit. Availing the credit facility, he had drawn a sum of Rs. 13,69,750/- but failed to supply granite stones to the Italian firm and instead had misappropriated the amount.

4. On the foot of the report, a case was registered against the second