Civil dispute with pending NCLT proceedings: HC grants interim protection from arrest while investigation continues.

A dispute prima facie civil in character, relating to rent from 2018 onwards and overlapping with proceedings already pending before the NCLT, led the HC to restrain arrest during investigation. The Court left the maintainability of the NCLT proceedings to be agitated before that forum and noted that any criminality would depend on the investigation. Investigation was allowed to continue, but the petitioner was directed to cooperate, appear before the investigating officer, and, if feasible, have the statement recorded through video conferencing. Interim protection from arrest was thus granted subject to cooperation.

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Issues: Whether, in a case arising from an essentially civil dispute concerning rent and related rights and where connected proceedings were already pending before the NCLT, the petitioner should be protected from arrest during investigation.

Analysis: The dispute was found, prima facie, to be civil in nature and centred on rent for the period 2018 onwards, with parallel proceedings already pending before the NCLT under the Insolvency and Bankruptcy Code. The Court left the question of maintainability of the NCLT proceedings to be raised before that forum and observed that the extent of criminality, if any, would depend on investigation. In these circumstances, while investigation was permitted to continue and the petitioner was required to cooperate and appear before the investigating officer, the Court also directed that arrest would not be made at that stage. The investigating officer was further directed to consider whether the petitioner's statement could be recorded through video conferencing if feasible.

Conclusion: The petitioner was granted interim protection from arrest, subject to cooperation with the investigation, while the FIR investigation continued.

Ratio Decidendi: Where the dispute giving rise to criminal allegations is prima facie civil in character and the connected subject matter is already under adjudication before the appropriate statutory forum, arrest during investigation may be restrained subject to the accused's cooperation.

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