1. The petitioners/A1 to A3 seek to quash the proceedings against them in C.C.No.588 of 2010 on the file of XI Additional Chief Metropolitan Magistrate, Secunderabad.

2. The factual matrix of the case is thus:

(a) The 2nd respondent filed a private complaint against the accused with the averments that the complainant is a registered company doing business in selling diamond and jewellery ornaments by purchasing them from different diamond and jewellery merchants as per the orders placed by the various customers. The accused are the manufacturers of diamond and jewellery ornaments and they used to make diamond and jewellery ornaments as per the orders placed by the complainant company. Therefore, the accused approached the complainant with an offer to manufacture and supply the diamond and jewellery ornaments by accepting 50% of the ordered amount and agreeing to collect the remaining balance at the time of delivery of the ornaments. The complainant and accused agreed to continue their business and accordingly developed acquaintance. They continued their business relations for some period. During the course of business on different dates between 03.04.2007 and 13.09.2008 the complainant placed orders for different types of diamond and jewellery ornaments worth Rs.50,27,032/- and paid the amount. The accused neither prepared the ornaments nor delivered them to the complainant. The accused expressed their inability to deliver the ornaments within the prescribed time and they used to postpone the matter from time to time. In the 1st week of September, 2008 the accused have requested the complainant to pay the remaining amount of Rs.2,27,032/- and the complainant paid the said amount through DD No.628385 dated 13.09.2008 drawn on ICICI Bank. Thereafter, the complainant demanded for delivery of the ornaments. On that, the accused abused the complainant in filthy and un-parliamentary language and also warned not to approach for collecting ornaments or for the amount. The accused intentionally and deliberately cheated the complainant with an intention to misappropriate the amounts given to them. Further, the accused threatened the complainant when requested for the ornaments or money.

(b) The said complaint was referred to police of Bowenpally PS under Section 156(3) Cr.P.C. and the same was registered as Cr.No.375 of 2008 for the offences under Section 406, 420 and 507 IPC. The police after investigation filed a final report dated 30.07.2009 before the Court submitting that facts of the case revealed both complainant and accused were running business transactions since last some years and in the course of business transaction the complainant issued cheques in favour of accused which were dishonoured and thereby, the accused have filed two criminal case-C.C.Nos.14969 and 14970 of 2008 for the offence under Section 138 r/w 141 and 142 of Negotiable Instruments Act (for short ‘NI Act’)before the learned Chief Judicial Magistrate Court at Surat and the same are pending and in those circumstances, the complaint allegations only reveal a civil dispute and accordingly filed final report.

(c) Aggrieved, the complainant filed a protest petition before XI Additional Chief Metropolitan Magistrate, Secunderabad. The Court, it appears, after examining LWs.1 to 3 took cognizance of the case for the offence under Sections 420, 406, 507 r/w 34 IPC and ordered summons. Hence the instant quash petition.

3. Heard arguments of Ms. K. Pallavi, learned counsel for petitioners and learned Additional Public Prosecutor for 1st respondent. Though 2nd respondent appeared through counsel, there is no representation.

4. Severely fulminating the order of the trial Court taking cognizance of the complainant, learned counsel for petitioners Ms. K. Pallavi would argue that the complaint allegations are false to the core in as much as, the petitioners/accused and complainant have been doing business in gold ornaments and jewellery quite for some time and some of