TRISUNS CHEMICAL INDUSTRY vs RAJESH AGARWAL

The Supreme Court held that the High Court erred in quashing the complaint under Section 156(3) of the Code of Criminal Procedure, as the allegations of cheating against the accused Directors were substantiated by evidence of inferior quality goods supplied. The Court emphasized that the existence of an arbitration clause does not preclude criminal prosecution for cheating, and that the jurisdiction of the Magistrate was valid. The appeal was allowed, reinstating the complaint and the Magistrate's order for investigation.