The court upheld the dismissal of discharge applications under Section 239, CrPC, confirming the existence of prima facie evidence for charges of criminal misappropriation and cheating against the accused.

1. This Criminal Revision case is directed against the order dated 7-10-2003 passed in Crl. M. P. No. 3779 of 2003 in C.C. No. 1020 of 2002 on the file of XXIII Metropolitan Magistrate, Hyderabad by which the learned Magistrate dismissed the application filed by the petitioners under S.239, CrPC.

2. Briefly, the facts are that the petitioners are A1 to A5 in the said C.C. The said C.C. arises out of a complaint presented by R2 - M/s. Nagarjuna Construction Company Limited, which formed the basis for registering a case in Crime No. 630 of 2002 under S.403, S.406, S.409 and S.420 of IPC. The complaint averments are that M/s. Diamond Cables Limited (petitioner No. 1 herein) agreed to supply the following materials to the complainant :

The complainant was supposed to make the payment through a letter of credit. In view of certain administrative problems for arranging letter of credit, the complainant officials had further discussions with the officials of M/s. Diamond Cables Limited and it was mutually agreed in writing that the consideration money should be paid within 45 days from the date of supply and that the Purchase Order should be backed - up by Bank Guarantee. M/s. Diamond Cables Limited shall be entitled to invoke the Bank Guarantees only in the event of the complainant - company failing to pay the consideration money within the agreed period. The Purchase Order dated 3-8-98 was amended to reflect the above terms of payment of purchase consideration money vide letter of amendment dated 4-12-98 and which changes were accepted by M/s. Diamond Cables Limited vide their letter dated 10-12-98. As per the terms of the amended Purchase Order the complainant - company had furnished the Bank Guarantees for Rs. 203.00 Lakhs (Three Bank Guarantees) issued by State Bank of India, Industrial Finance Branch, Somajiguda, Hyderabad. The first consignment was on 17-3-99 and the last consignment was on 11-5-99. For the first consignment, the complainant - company had arranged payment of Rs. 97.55 lakhs by way of Hundi bearing No. 0910399LB00077 dated 9-4-1999 through State Bank of India, Industrial Finance Branch, Somajiguda, Hyderabad. The complainant - company had requested M/s. Diamond Cables Ltd. to return the Bank Guarantee dated 26-12-1998. The complainant was informed by M/s. Diamond Cables Limited that the concerned Director was out of the country and after his return, the Bank Guarantee would be returned. The complainant issued various reminders requesting M/s. Diamond Cables Limited to return the Bank Guarantee dated 26-12-1998. For the supply of material made by M/s. Diamond Cables Limited on 11-5-1989, the complainant - company had time to pay the consideration amount till the first week of July, 1998. But M/s. Diamond Cables Limited invoked all the three Bank Guarantees on 24-6-99 and collected Rs. 203.00 lakhs illegally and fraudulently and thereby cheated the complainant - company. The complainant - company issued notices on 3-2-2000, 26-2-2000 and 10-5-2000 demanding M/s. Diamond Cables Limited to refund the excess amount illegally and fraudulently claimed by them. M/s. Diamond Cables Limited instead of paying the amount resorted to claiming a further amount of Rs. 149.97 lakhs from the complainant - company and filed Special Civil Suit No. 843 of 2000 in the Court of Civil Judge (SD) at Vidharbha. The complainant - company al