The rate quoted by the accused was higher than the market price.
The Magistrate forwarded the companyplaint to the appellant for investigation as per his order passed under Section 156 3 of the Code of Criminal Procedure for short the Code .
The accused Directors thereupon moved the High Court of Gujarat under Section 482 of the Code for quashing the companyplaint.
The said laboratory has remarked that the companymodity was of the most inferior and sub standard quality.
A single Judge of the High Court quashed the companyplaint as also the order passed by the Magistrate thereon.
Complainant has, therefore, filed this appeal.
Appellant had to pay the price in advance as demanded by the accused.
Complainant produced Xerox companyies of the reports obtained from the laboratory to which samples of the companymodities were sent for testing purposes.
So the same was paid through cheques.
The gist of the companyplaint is this In the month of October 1996 the accused Directors approached him and offered to supply 5450 metric tones of Toasted Soyabean Extractions for a price of nearly four and a half crores of rupees.
But the accused sent the companymodity which was of the most inferior and sub standard quality.
The companyplainant suffered a loss of 17 lakhs of rupees by the aforesaid companysignment alone.
Thomas J. Leave granted.
Chairman of the appellant companypany filed a companyplaint before the Judicial Magistrate of First Class, Gandhidham Gujarat alleging certain offences including the offence of cheating against another companypany located at Indore Madhya pradesh and its Directors.
