Here is the Judgment of Supreme Court clearly calling out the principle to be followed u/s 227 of Cr.P.C
State Of Bihar vs Ramesh Singh on 2 August, 1977
“the test is whether there is a sufficient ground for proceeding and not, whether there is a sufficient ground for conviction”
Other Source links:
Index of Discharge Judgments u/s 227 Cr.P.C. is here.
Reproduced in accordance with Section 52(q) of the Copyright Act 1957 (India) from main.sci.gov.in/judgments, judis.nic.in, lobis.nic.in, indiacode.nic.in and other Indian High Court and District Court Websites such as ecourts.gov.in