Heard Mr. A.K. Kashyap, learned senior counsel for the petitioners and Mr. A Allam, learned senior counsel for opposite party no. 2.

2. In this application, the petitioners have prayed for quashing the entire criminal proceeding in connection with Sector IV P.S. Case No. 159 of 2013, G.R. No. 1608 of 2013, which has been registered for the offence punishable under Section 406, 420/34 of the Indian Penal Code.

3. The prosecution story as would appear from the FIR instituted by the informant is that the petitioners being the Directors of M/s Revati Exim Pvt. Ltd. had obtained loan for steel processing and trading to the tune of Rs.300 lacs, which was sanctioned on 23.12.2010 and which was subsequently enhanced to Rs.400 lacs. The stock of steel, paper and finished articles were primarily hypothecated as guarantee for working capital and cash credit and rolling machine was hypothecated as guarantee for term loan. It has been stated that the land lying in mouza Pindrajora, Khata No. 25, Plot No. 2770, 2807 and 2809, Area 4.28 acres, registered in the name of Revati Exim Pvt. Ltd. measuring 4.28 acres vide registered sale deed no. 1147 dated 11.02.2010 was given under equitable m