The High Court improperly quashed criminal proceedings under Section 482 without sufficient grounds, emphasizing that all allegations meriting investigation must be thoroughly considered.

1. Leave granted.

2. The challenge in this appeal is to the judgment of a learned Single Judge of the Madras High Court allowing the application filed under S.482 of the Code of Criminal Procedure, 1973 (in short "CrPC"). Prayer in the petition was to call for the records in Crime No. 576 of 2005 on the file of the Inspector of Police, Team IV, Central Crime Branch, Chennai, and to quash the same. Respondents 1 to 4 were booked for alleged commission of offences punishable under S.379, S.468, S.471, S.420, S.506 Part II of the Penal Code, 1860 (in short "IPC") based on the reference made by the learned Additional Chief Metropolitan Magistrate, Egmore, on the complaint presented by the present appellant under S.200 CrPC.

3. In the complaint essentially it was stated as follows:
"3. The first accused is M/s Sri Krishna Tiles and Potteries (Madras) (P) Ltd., the second accused is A. R. Santhanakrishnan, Director of the first accused Company, the third accused is Mrs. Radhika Santhanakrishnan, yet another Director of the first accused Company and the fourth accused is Chandrasekaran, working as Commercial Manager of M/s Sai Sri Krishna Properties and Facilitators (P) Ltd.
4. M/s Sri Krishna Tiles and Potteries (Madras) (P) Ltd. is the owner of property to an extent of 34.04 acres in Thirumangalam Village, Anna Nagar (West), Chennai. The first accused Company entered into a memorandum of understanding with the complainant on 2-7-2001, as per which the first accused Company entrusted the land for development with the complainant. The complainant started developing the properties through his partnership firm M/s Sai Sri Krishna Properties. M/s Sai Sri Krishna Properties was converted to a private limited company, in which the complainant was the Managing Director and the third accused was the Director. An agreement was entered into between the said M/s Sai Sri Krishna Properties and Sri Krishna Tiles and Potteries (Madras) (P) Ltd. on 24-6-2002. The newly floated M/s Sai Sri Krishna Properties was appointed as a facilitator by Accused 1 to 3 for developing the properties after obtaining approval from Chennai Metropolitan Development Authority (CMDA). Since Accused 1 to 3 were not in a position to obtain approval from CMDA, the project could not be completed at the earliest. 5. Pursuant to the above agreements, the complainant entered into an agreement to sell and an agreement to construct with 146 purchasers and received a sum of Rs 2,54,67,091 as sale advance. The complainant had invested a total sum of Rs 3 crores approximately including the said sum of Rs 2,54,67,091 for the purpose of developing the project and maintaining the property. The complainant had returned a sum of Rs 21,71,360 to 47 allottees out of the 146 allottees. A sum of Rs 2,29,71,775 has to be refunded by the complainant to the remaining 99 allottees. Accused 1 to 3 are also negotiating with the allottees for refunding the advance sale consideration received from them. The purchasers informed the complainant that the agreement between Accused 1 to 3 and the complainant's private limited company had been terminated by mutual consent. The complainant was shocked to see that the records and the accounts relating to the said private limited company were found missing at its office. The third accused had illegally taken away all the records and accounts relating to the said private limited company, including the originals of the aforesaid two agreements dated 24-6-2002. Refunds have also been made to few of the purchasers with a mala fide intention of cheating the complainant. The complainant never entered into any mutual agreement for termination of the aforesaid agreements. Accused 1 to 3 hav