TaxTMI 
TaxTMI 
2017 (4) TMI 1560
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....ring data base services internationally for the last several years. Appellant No. 2 is the Chairman and Chief Executive Officer of Appellant-company and Appellant No. 3 is its executive Vice-President. Respondent is a company registered under the Indian Companies Act, 1956, having its registered office in Pudducherry, India. It is engaged in the business of providing quality knowledge based back and works (KPO) and software solutions to various enterprises in the World from its centers based in India. 3. Negotiations took place between the Respondent-company and the Appellant-company as the Appellant-company expressed its willingness to utilise the services of the Respondent, i.e., knowledge based back and works and software development sk....
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....y and if any case arises in future, the same shall be resolved by the parties amicably by a dispute resolution procedure, mechanism whereof was provided in Clause 1.8 of Article 8 of the agreement. In fact, this clause is an arbitration clause as per which parties agreed to settle their disputes peacefully by means of arbitration. 5. Unfortunately, in spite of the aforesaid second agreement entered into between the parties, the working relationship between them could not be carried out satisfactorily and disputes again arose between them. As per the Appellant, the Respondent again committed breach of material terms of the second agreement in respect to quality and timely providing of services and failed to discharge its contractual obligat....
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.... of the Indian Penal Code and in the said complaint, after recording the statement of the complainant, the learned Magistrate had issued summons dated 05.04.2012 to the Appellants finding that prima facie case under the aforesaid provisions was made out. 6. The Appellants challenged the aforesaid summoning orders by filing petition Under Section 482 of the Code of Criminal Procedure, 1973, in the High Court of Madras. This petition has been dismissed by the High Court vide impugned judgment dated 11.11.2014 and challenging this judgment, the instant petition has been preferred by the Appellants wherein leave has been granted hereinabove. 7. To record the events that have taken place thereafter and have a bearing on the present case, we ma....
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....eement comprises a provision for arbitration? (iii) Whether the Magistrate has conducted the enquiry Under Section 202 Code of Criminal Procedure, since the Petitioners are residing outside the jurisdiction of the Court? 9. The High Court was of the view that the allegations contained in the complaint filed by the Respondent, particularly in paragraph 7 thereto, satisfy the ingredients of the offences for which the Appellants are implicated. But the High Court further observed that merely because arbitration proceedings were pending between the parties, it would not preclude the Respondent from launching criminal prosecution when prima facie criminal case was also made out against the Appellants. In the three question formulated, the Hig....