JUDGMENT

D.P. Wadhwa, J.—Leave granted.

2. This appeal is directed against the judgment dated June 5, 1999 of Allahabad High Court dismissing the application of the appel­lants filed under Section 482* of the Code of Criminal Procedure (for short, the ‘Code’). By this application the appellants had sought quashing of the criminal proceedings pending against them under Section 406/420** of the Indian Penal Code (for short, the ‘IPC’) in the Court of Chief Judicial Magistrate, Ghaziabad and arising out of Case Nos. 674 of 1997 of Police Station Noida, district Gautam Budh Nagar.

3. The First Information Report (FIR No. 517 dated August 17, 1997) was filed against seven persons including the two appel­lants by Mr. P.K. Sen Gupta (Respondent No. 2), General Manager, M/s. Phoenix Inter­national Finance Ltd., Noida (for short, the ‘Finance Company’). He alleged that Ashwani Suri, G. Sagar Suri (the first appellant) and Sukhvinder Singh contract his company on telephone in the first week of June, 1996 with intention to cheat and commit fraud on him. They had stated that they along with Shalini Suri, Shama Suri (the second appellant), Charanjit Singh and M.L. Kampani were the Directors of