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Issues:
1. Quashing of order refusing to permit disposal of silver bars 2. Quashing of entire criminal proceeding and investigation Analysis: 1. The application sought to quash an order refusing the petitioners to deal with silver bars released to them by a previous court order. The petitioners, a Hindu Undivided Family (HUF) firm, were involved in the bullion business. The silver bars were seized by the police during transportation to Delhi for sale. The court initially released the bars with conditions, but the petitioners later sought permission to make ornaments from the bars, which was denied. The petitioners argued that no offense under Section 414 of the Indian Penal Code was made out against them as the goods were carried under a valid voucher for legitimate business purposes. The court analyzed the provisions of Section 414 and emphasized the lack of evidence to suggest the silver bars were stolen property, ultimately allowing the application to quash the order refusing disposal of the silver bars. 2. The petitioners also sought to quash the entire criminal proceeding and investigation, contending that no case under Section 414 of the Penal Code was established against them. The court considered the principles laid down by the Supreme Court regarding quashing proceedings where no offense is constituted. It was highlighted that the police must have reason to suspect the commission of a cognizable offense before commencing an investigation. The court noted the absence of any theft case registered in connection with the silver bars and the lack of evidence indicating they were stolen property. Relying on previous judgments, the court concluded that the first information report did not disclose any offense, leading to the decision to quash the entire criminal proceeding and investigation. The court emphasized preventing the abuse of the court's process and securing the ends of justice in reaching this decision.
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