Basudeva Panigrahi, J.

This application has been filed under section 482 of the Code of Criminal Procedure, 1973 for quashing of the proceedings in Gr. No. 240/99 pending before the learned Judicial Magistrate, Sealdah, South 24-Parganas arising out of Maniktala Police Station Case No. 20/99 dated 2.2.99, under section 420/120B of the Indian Penal Code.

2. The scaletal picture of the prosecution story is as follows:

The petitioners are the directors of M/s. Shree Hanuman Foundry and Engineering Company Limited (hereinafter referred to as 'M/s. Hanuman'). The Company has been engaged for manufacturing CI Casting and other products from pig iron and holds considerable good reputation in the market. That M/s. Hanuman was allegedly approached by the de facto complainant herein namely Mr. Rabindra Singh, Managing Director of M/s. ISC Magnetics (P) Ltd. The Managing Director of ISC proposed to M/s. Hanuman that the defacto complainant company was willing to supply the said company with pig iron at long credits spreading over within six to nine months. It had further agreed that the credit limit might be up to 1.5 crores.

3. The M/s. ISC Magnetics Private Limited started supplying pig