JUDGMENT

B.K. PATEL, J. — Criminal Proceeding in G.R.Case No. 1728 of 1997 initiated against the petitioners for the alleged commis¬sion of offences under sections 420 and 406 read with 34 I.P.C. in the Court of learned S.D.J.M.(S), Cuttack has been assailed in all the three application under Section 482 Cr.P.C.

2. In CRLMC No. 661 of 2007 prayer has been made to quash the order dated 12.2.2007 by which petitioner C.S. Nair’s prayer to discharge him under Section 239 Cr.P.C. was rejected. Peti¬tioner M.K. Verma has made prayers to quash the order dated 7.10.2002 taking cognizance of the aforesaid offences upon receipt of charge sheet against C.S. Nair in CRLMC No. 1949 of 2008 and to quash the order dated 1.11.2004 taking cognizance of the aforesaid offences upon receipt of supplementary charge-sheet against him in CRLMC No. 2004 of 2009.

3. Petitioner M.K. Verma is the Managing Director of M/s. Vogue Garments Pvt. Limited whereas petitioner C.S. Nair is the proprietor of M/s. Harsha Fashion. G.R. Case No. 1728 of 1997 corresponding to Madhupatna P.S. Case Nos. 400 of 1997 was regis¬tered on the basis of the F.I.R. lodged by the Orissa Small Industries Corporation Limited (for short, ‘the OSIC’), a Govern¬ment of Orissa Undertaking against the petitioner M.K. Verma for alleged commission of offence under Section 420 I.P.C. Initially charge-sheet was submitted against the petitioner C.S. Nair only under Sections 420 and 406 read with 34 I.P.C. keeping the inves¬tigation open under Section 173(8) Cr.P.C. Thereafter, supplemen¬tary charge-sheet was submitted against petitioner M.K. Verma.

4. It is alleged that M/s. Vogue Garments Pvt. Ltd. procured two orders for export of different varieties of dresses to M/s Fashion Book Inc., New York, USA. On being approached by the petitioner M.K. Verma, the OSIC paid to M/s Vogue Garments Pvt. Ltd. and Harsha Fashion Rs.30,28,500/- for execution of the export orders. For the purpose an agreement was executed between the OSIC and the petitioner M.K. Verma and sanction order was issued by the OSIC. In terms of the agreement both the export orders were transferred in favour of the OSIC by M/s Fashion Boom Inc., New York, USA. M/s Harsha Fashion was paid for procurement of fabrics for manufacture of garments on the request of M/s Vogue Garments Pvt. Ltd. It is alleged in the F.I.R. that the letter issued by the OSIC to M/s. Harsha Fashion was returned undelivered and that the petitioner M.K. Verma left for USA on 22.9.1996 without any intimation to the OSIC.

It is further stated in the F.I.R. that the petitioner M.K. Verma has been assuring from the USA to repay the loan and that he sent a draft for US$1000/- which was credited to the account of the OSIC on 7.4.1997 as advance of an export order. On the basis of the above averments, it was alleged in the F.I.R.:

“It is learnt that Sri Verma in order to cheat the Corporation has deliberately induced the Corporation to deliver the advance amount in his favour and has mis-utilized and misap¬propriated a sum of Rs.30,28,500/-. Shri Verma as a merchant has misappropriated the entire amount by cheating the Corporation. The Corporation being a public body and dealing with public money has sustained heavy loss for such cheating and misappropriation. Since Mr. Verma and his other Directors of the unit are jointly responsible for such cheating and misappropriation, a case be registered and investigation may kindly be taken up.”

5. Investigation was conducted under Mangalabag Police Station till 15.1.1998 when the same was handed over to the C.I.D., Crime Branch, Orissa.

6. Initial charge-sheet dated 6.10.2002 reads:

“Brief facts of the case is that on 3.10.1997 complainant Sandeep Pattnaik, Manager, Exports of O.S.I.C. Ltd., Khapuria, P.S. Madhupatna, Cuttack submitted a written report at madhupatna P.S. alleging that Rs.30,28,500/- was paid to M/s.Vogue Garments Pvt. Ltd. BBSR and M/s Harsha Fashions, 56-A, V. Nagar, New Delhi-45 for execution of expor