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With these observations this Special Leave Petition is disposed off."

21. The High Court by order dated 8th August, 2003 allowed the petition and quashed the order issuing process passed by the JMFC, Pune. Aggrieved by the said judgment, the appellant have filed the present appeal before this Court.

22. We have heard Mr. Ram Jethmalani, learned senior counsel, for the appellant, Mr. Ashok Desai, learned senior counsel for the respondent no. 1 and Mr. Parag Tripathy for the Union of India at considerable length.

Mr. Jethmalani relied on Kalpnath Rai Vs. State9, Asstt. Commr. Vs. Velliappa Textiles Ltd10., and Standard Chartered Bank Vs. Directorate of Enforcement11. It was finally submitted by Mr. Jethmalani that the High Court has converted itself into the Court of a Judicial Magistrate and conducted an inquiry under Section 202, 244 and 245.

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[(1997) 8 SCC 732] [(2003) 11 SCC 405] [(2005) 4 SCC 405]

27. Mr. Parag Tripathi, the learned Addl. Solicitor General submitted that the High Court was unnecessarily influenced by the fact that the service has not been duly affected on the respondent. This did not lead to the only conclusion that the defective service was a deliberate attempt to enable the appellants to adopt coercive process against the respondent. It is further submitted by Learned ASG that the High Court wrongly concluded that the highlighting of the risk factors would absolve the respondents of the criminal liability. According to the ASG, the mere existence of an arbitration clause, does not lead to the conclusion that there can be no criminal liability in such cases. In support of the submissions, the ASG relied on Trisuns Chemical Industry Vs. Rajesh Agarwal12, It is further submitted that the respondent company cannot hide behind the defence that the company is incapable of possessing the necessary mens rea for commission of the offence of cheating. In support of the submissions, he relied upon the following judgments:- Asstt. Commr. Vs. Velliappa Textiles Ltd13.,, Standard Chartered Bank Vs. Directorate of Enforcement14.