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[Landmark Judgement] Sri Krishna Agencies V. State of A.P. (2009) 

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Landmark Judgment Law Insider (1)

Published on: November 30, 2023 at 19:35 IST

Court: Supreme Court of India

Citation: Sri Krishna Agencies V. State of A.P. (2009) 

Honourable Supreme Court of India has held that there can be no bar to the simultaneous continuance of a Criminal proceeding and a Civil proceeding if the two arise from separate causes of action. It is held that Civil proceedings can be before the Arbitration Tribunal as well. It is held that merely because arbitration proceedings have been undertaken, the criminal proceedings could not be thwarted.

3. Before the High Court, it was sought to be contended on behalf of Respondent 2 that since the appellant herein had already taken recourse to arbitration proceedings, the dispute was obviously of a civil nature and the criminal complaint could not be proceeded with. Accepting the statements made on behalf of Respondent 2, the High Court quashed the complaint as indicated hereinabove.

4. Mr Adhyaru, learned Senior Counsel appearing in support of the appeal, submitted that the High Court has apparently confused the issue relating to the continuance of the arbitration proceedings as also the criminal proceedings, since when the cheques were dishonoured, a separate liability arose in terms of Section 138 of the Act, whereas the arbitration proceedings were under the agreement signed between the parties. It was submitted by him that the commencement and the continuance of the arbitration proceedings could in no way affect the criminal proceedings taken separately.

5. In support of his submissions, Mr Adhyaru referred to the decision of this Court in Trisuns Chemical Industry v. Rajesh Agarwal where the same question arose in relation to arbitration proceedings taken during the continuance of a complaint filed under Sections 415 and 420 of the Code of Criminal Procedure. In the said decision, it was held that merely because arbitration proceedings have been undertaken, the criminal proceedings could not be thwarted.

Drafted By Abhijit Mishra