JUDGMENT

S.B. Sinha, J.

1. Leave granted.

2. Applicability of Section 195(1) of the Code of Criminal Procedure, 1973 (the Code) is in question in this appeal which arises out of a judgment and order dated 17.8.2007 passed by the High Court of Punjab and Haryana in Criminal Miscellaneous No.62858 of 2005.

3. Lakhani Rubber Udyog Ltd. Manufactures Hawai Chappel. They are registered owners of a trademark. Inter alia, on the premise that M/s. Saraswati Utpadan Pvt. Ltd., Respondent No.2 herein had been marketing inferior goods with the label 'Lakhani' illegally, a complaint was lodged by the second appellant herein to SHO, Police Station Jalandhar. He was asked to approach the Senior Superintendent of Police, Jallandhar. On or about 18.1.2005, the second appellant approached the Senior Superintendent of Police, Jallandhar with a written complaint, stating :

"The inferior quality goods bearing the falsified trade mark and as are packed infringing labels/cartons are being sold and offered for sale at various places in Faridabad and the purchasing public is being deceived and cheated by such persons. The Government is also being defrauded by huge reveues on account of the illegal trade activities of such persons. We wish to bring it to your notice that such persons/traders have full knowledge about the legal and vested rights of our company and are not only committing acts of falsification/infringement and are also abetting the infringement of copyright and are committing offence as are cognizable and are punishable under Section 63 of the Copyright Act read with Section 78-79 of the Trade and Merchandise Marks Act, 1958.

We further submit that the said unscrupulous persons have in their power and possession dies, the goods to which false trade marks, false trade description has been applied including the material and with logo, which are used for the purpose of falsifying our company's Trade MarK and Logo. The said goods are also offered for sale by the said accused.

You are requested to take legal action against the abovesaid parties and oblige."

4. In the body of the said complaint itself, the Senior Superintendent of Police directed one Gian Singh, to comply with the said request of the second appellant and report. When a search was sought to be carried out in the premises of the respondent purported to be on the basis of the said direction, a large number of people objected thereto. They obstructed in the proceeding of search and misbehaved with the raiding party. However, nothing objectionable was found in the factory. A report to the said effect was submitted by the aforementioned Gian Singh, In-charge, Special Cell of the CIA.

5. Another report was filed by the Superintendent of Police (Detective) on 8.4.2005 before the Senior Superintendent of Police, stating :

"On inquiry of aforesaid application, it was found that owner of Lakhani Rubber Udyog, 130, Sector 24, Faridabad had submitted an application No.102-Peshi 16/1/2005 concerning duplicate hawai chappal to the SSP. It was forwarded to Gian Singh, Insp. CIA for necessary action Gian Singh Insp. on 19/1/2005 along with employees and Sh. Munish Arora, Adv. Sh.N.D. Arora, Marketing Advisor, Manohar Juneja and Sanjay Sood, Marketing Manager of Lakhani Rubber Udyog Limited, Faridabad, Haryana, reached at the factory of Saraswati Utpadan, at Dogri Road, for checking and made the search of the factory. During this period for the opposition put by the owners of the factory there was little altercation also took place. During search neither anything in the name Lakhani Chappal nor anything of the like appearance was found and also nothing objectionable thing was found. Therefore, the application submitted by the aforesaid Lakhani Rubber Udyog, Faridabad was found to be false after investigat