It appears from the records that there was an arbitration agreement between the petitioner and the respondent in the year 1971 for procurement of paddy.
39 of 1973.
In respect of this shortage the Food Corporation of India represented through its District Manager, Food Corporation of India filed an arbitration application on 30th October, 1973, which proceedings, it is stated, were pending in Arbitration Case No.
of paddy and 116 78.600 qtls.
According to the respondent on a joint physical verification by the Magistrate Civil Supplies Staff and Food Corporation Staff on 1st November, 1972 a heavy shortage of 206.10 qutls.
Thereafter, on an application filed by the respondent the case was taken on the file of Chief Judicial Magistrate under Section 406 of the Indian Penal Code and summons was issued to the petitioner.
One of the clauses of the agreement was that a shortage to the extent of 1.25 kgs.
of paddy procured should be permitted and beyond that shortage the petitioner would be liable for payment of penalty at the rates prescribed in the agreement.
A case was registered and referred to the Vigilance Department on 3rd March, 1976.
of rice out of a total quantity of 23,197.40 qtls.
of paddy procured during 1971 72 was found in the stock of paddy and rice with the petitioner.
Ratnavel Pandian, J. Leave granted.
This appeal is directed against the order of the High Court dated 13th December, 1985 dismissing the application filed under Section 482 of the CrPC by the petitioner for quashing the proceedings taken against him for offence punishable under Section 406 of the Indian Penal Code.
