JUDGMENT

ORDER:— Leave granted.

2. This appeal is directed against the order of the High Court dated 13th December, 1985 dismissing the application filed. under S. 482 of the Code of Criminal Procedure by the petitioner for quashing the proceedings taken against him for offence punishable under S. 406 of the Indian Penal Code.

3. It appears from the records that there was an arbitration agreement between the Petitioner and the respondent in the year 1971 for procurement of paddy. One of the clauses of the agreement was that a shortage to the extent of 1.25 kgs. per. qtl. of paddy procured should be permitted and beyond that shortage the petitioner would be liable for payment of penalty at the rates prescribed in the agreement. According to the respondent on a joint physical verification by the Magistrate Civil Supplies Staff and Food Corporation Staff on Ist November, 1972 a heavy shortage of 206.10 qutls. of paddyan.d 11678.600 qtls. of rice out of a total quantity of 23,197.40 qtls. of paddy procured during 1971-72 was found in the stock of paddy and rice with the petitioner. In respect of this shortage the Food Corporation of India represented through its District Manager, Food Co