MAHESH GROVER, J.

1. The petitioners have invoked the provisions of Section 482 of the Code of Criminal Procedure with a prayer to quash the fir No.132 dated 29.7.1996 under Sections 406 IPC registered with police Station Focal Point, Ludhiana.

2. The petitioners were the Directors of M/s Thapar Foods limited having resigned from such directorship on 3.4.1996. It has been averred that the respondent No.2 filed a complaint to the Senior superintendent of Police, Ludhiana on 18.7.1996 in which it was alleged that Thapar Foods Limited had embezzled 3034 MT of paddy stocks worth Rs.1,13,77,500/-. Accordingly, FIR No.132 was registered under the provisions of Sec.406 of the Indian Penal code at Police Station, Focal Point, Ludhiana on 29.7.1996. The respondent No.2 is alleged to have initiated arbitration proceedings as per the agreement dated 11.10.1994 existing between the parties. The respondent No.2 thereafter filed another FIR bearing No.86 dated 12.7.1995 at Police Station, Sahnewal. The said FIR was quashed by this Court vide order dated 21.1.2000. An amount of Rs.1,61,82,728/-was deposited by the petitioners. Subsequently another FIR was lodged by the respondent No.2 bea