IMPORTANT POINTS
Failure to mention first complaint, not leading to conviction, acquittal or discharge or even if dismissed for default, in subsequent complaint is inconsequential. However if dismissed on merits, it must be mentioned.
Mere breach of contract is not a criminal offence in itself.
It is wholly impermissible for High Court exercising jurisdiction u/s 482 CrPC to adjudge correctness of allegations in the complaint.
A judgment is a precedent for the issue of law raised and decided. Phrases and sentences in a judgment cannot be read in isolation.

JUDGMENT :

Indira Banerjee, J.

This appeal is against the final judgment and order dated 20-03-2006 passed by the High Court of Judicature at Madras, inter alia, allowing Criminal Original Petition No.27039 of 2005 filed under Section 482 Cr.P.C. and quashing the criminal proceedings being Crime No.54 of 2005 against the petitioners before the High Court and also against the first accused company, which was not party before the High Court.

2. The appellant, Shri Ravi Kumar carries on business of cotton ginning and conversion of cotton into yarn at Salem, Tamil Nadu as proprietor of “SARAVANA YARN TRADERS”.

3. The appellant as proprietor of “SARAVANA YARN TRADERS” entered into transactions with Sri. Rajendran Mills Ltd., Salem (hereinafter referred to as “the Mill”). The respondent No.2/accused No.2 is the Managing Director of the Mill and the respondent No.3/accused No.3 Sri Sundaram is its Chairman, respondent No. 4/accused No.4 Sri Sundar is the son of the Managing Director being the respondent No.2/accused No.2 and is in charge of the affairs of the Mill. The respondents/accused Nos.5 to 13 are also responsible for administering the Mill.

4. In December 2001, the Mill requested the appellant to supply cotton lint to the Mill for conversion of the same into yarn. The appellant and the respondents entered into transactions in 2001. Later, in January 2002, a Memorandum of Understanding in writing was executed between the appellant and the Mill.

5. The appellant has alleged that pursuant to the Memorandum of Understanding, the appellant supplied 1,03,920 Kgs of cotton lint to the Mill for conversion into yarn. The appellant has further alleged that respondent No.2/accused No.2 Shri Chokalingam had, from out of the said quantity of cotton lint, purchased lint weighing about 47,164 kgs of the value of Rs.26,93,289/- on credit basis and the balance which was worth Rs.35,26,561.69 had been entrusted to the Mill for conversion into yarn.

6. According to the appellant, the Mill did not take any step to convert the lint into yarn in spite of repeated requests. The appellant later came to know that all the accused had connived with each other and in criminal breach of trust sold the entire cotton lint weighing about 1,08,920/-kgs of the value of about Rs.62,19,850.50 and appropriated the sale proceeds thereof.

7. On 20-05-2004, the appellant lodged a complaint at the Edapadi Police Station, Salem district against respondents for offences under Sections 420 and 409 read with Section 34 of the Indian Penal Code.

8. As the Police failed to register any case, the appellant invoked Section 156(3) of the Cr.P.C. to seek orders of the learned Judicial Magistrate II, Sankagiri for registration of the complaint.

9. Even after orders under Section 156(3) of the Cr.P.C., the Police did not register any complaint. Thereafter, the appellant filed a petition being Crl. O.P. No.7715 of 2005 praying for direction on the Inspector of Police to register a case on the basis of the complaint made by the appellant.

10. It is stated that since the amount involved exceeded the limit for invocation of the pecuniary jurisdiction of the local Police Station, the Superintendent of Police transferred the investigation to the District Crime Branch and the same was registered as Crime No.54/2005 under Sections 420, 409 and 34 IPC on 22-06-2005.

11. According to the appellant, since the police did not conduct the investigation properly, the appellant was constrained to file Crl. O.P. No.23354 of 2005 in the High Court of Madras for direction on the Investigation Officer of Crime No.54 of 2005 to arrest the accused mentioned in the FIR, complete the investigation and file a final report.

12. By an order dated 29-08-2005, the High Court disposed of the criminal original petition by directing the respondent to file a final Report within three months from the date of receipt of a copy of the said order.

13. It is pleaded that as the Police could not complete the investigation within