Code of Criminal Procedure, 1973- ss. 482- Quashing of FIR registered u/ss. 420 and 409 /PC and u/ss. 64 and 69 of Stamp Act - Allegation that LIC. officers not purchasing insurance stamps from Treasury office of State but from stamp vendors, outside of State causing loss to State Government - High Court rejecting quashing of FIR - Held: High Court ought to have quashed the criminal proceedings "- Provisions of Stamp Act and Constitution of India indicates untenability of the allegation made in FIR - Act of LIC officers purchasing insurance stamps from outside the State not inconsistent with any provisions of Stamp Act or any other rules - Allegation in FIR even if proved by prosecution did . not constitute any offence - Hence, order of High Court set aside - Stamp Act, 1899 - ss. 64 and 69 - U.P. Stamp Rules - r. 115A - Penal Code, 1860 - ss. 420 and 409 - Constitution of India, 1950 - Entry 91 of List, Schedule VII. 

Appellants were working as officers in the Life Insurance Corporation of India. The branch officers of LIC used to purchase insurance stamps in large quantity for execution of insurance policies from the Treasury in any district as well as from authorised licenced stamps vendors. It is alleged that the Divisional Office of the LIC, Varanasi did not purchase the insurance stamps from the Treasury office of U.P. but from the Stamp Vendors, outside of State causing loss of Rs. 1,67,21,520.001· to the State Government. FIR was registered against the appellants u/ss. 420 and 409 IPC and u/ss. 64 and 69 of the Stamp Act, 1899 in relation to stamp purchase. Appellants filed writ petitions for quashing the FIR but the same were dismissed. Hence the present appeal.