Arbitration and Cheque Dishonor: Court Upholds Separate Causes of Action, Allows Simultaneous Civil and Criminal Proceedings.

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Full Text of the Document

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....Dishonour of Cheque - Effect of arbitration proceedings - The High Court referred to a Supreme Court judgment which clarified that arbitration proceedings and proceedings under Section 138 NI Act arise from separate causes of action. As per the Supreme Court precedent, the pendency of arbitration proceedings would not affect the proceedings under Section 138 NI Act. - The Court emphasized that there was no bar to the simultaneous continuance of criminal and civil proceedings if they arose from separate causes of action. Therefore, the contention of the petitioners that the complaint under Section 138 NI Act was not maintainable due to ongoing arbitration proceedings was dismissed.....