RANJIT SINGH, J.

1. The petitioners, who are partners of rice sheller being run under the name and style of Zimidara Rice Mills, Dhilwan, District Kapurthala (hereinafter referred as “the mill”), seek quashing of FIR No.46 Dated 4.7.2003 registered against them under Sections 420, 408 and 120-B IPC at Police Station Dhilwan, District Kapurthala.

2. The above noted FIR had been registered at the instance of District Manager PUNSUP, District Kapurthala. The allegations made in the FIR reveal that on 8.10.2001 the mill had entered into an agreement with PUNSUP, Kapurthala, a Government Undertaking, for custom milling of paddy crop for the year 2001- 2002. The mill was required to deliver the rice to FCI in the PUNSUP account after milling the paddy crop. The mill was entrusted 96275 bags weighing 4-8137-50-000 of paddy grade-A. Out of this quantity, 29270 bags weighing 14586-44-000 paddy was transferred by the miller to other rice mills for milling purposes. As such, 67005 bags weighing 33551-06-000 paddy grade-A was left with the miller for custom milling as aforementioned. Against this, the miller delivered 22184 bags weighing 16582-27- 000 rice grade-A to FCI in PUNSUP acc