M/S SRI KRISHNA AGENCIES versus STATE OF A.P. & ANR.

M/S SRI KRISHNA AGENCIES versus STATE OF A.P. & ANR.

There can be no bar to the simultaneous continuance of criminal and civil (arbitration) proceedings if they arise from separate causes of action; the criminal liability under Section 138 is distinct and not affected by arbitration proceedings.

Parties
Appellant: SRI KRISHNA AGENCIES; Respondents: STATE OF A.P. & ANR.
Jurisdiction
India
Judgment Date
11 November 2008
Procedural Posture
Criminal Appeal / Appeal From Quashing of Criminal Proceedings at High Court
Outcome
appeal allowed
Legal Topics
Negotiable Instruments Act, Dishonour of Cheques, Quashing of Complaint, Arbitration and Criminal Proceedings, Section 138 of the Negotiable Instruments Act, Section 482 Cr PC

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Parties

SRI KRISHNA AGENCIES

Appellant

STATE OF A.P. & ANR.

Respondents

Procedural Posture

Criminal Appeal / Appeal From Quashing of Criminal Proceedings at High Court

  1. 1 Whether criminal proceedings under Section 138 of the Negotiable Instruments Act can continue when arbitration proceedings are pending between the parties
  2. 2 Whether the High Court was correct in quashing the criminal complaint on the ground of pending arbitration proceedings

Ratio Decidendi

There can be no bar to the simultaneous continuance of criminal and civil (arbitration) proceedings if they arise from separate causes of action; the criminal liability under Section 138 is distinct and not affected by arbitration proceedings.

Court Disposition

appeal allowed

Orders

  • Order of the High Court quashing the complaint is set aside
  • Complaint before the II Additional Chief Metropolitan Magistrate, Hyderabad is restored and to be proceeded with in accordance with law