Citations on arbitration clause in sec 138 case

Dishonour of cheque _ Quashing of complaint on the ground that complainant had already taken recourse to arbitration proceedings _ When the cheques were dishonoured a separate liability arose in terms of Section 138 of N.I. Act _ Commencement and the continuance of arbitration proceedings could in no way affect criminal proceedings taken separately _ 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 _ Impugned order quashing the complaint set aside.(See 2009 (9) LJSOFT (SC) 200)

For full text visit www.ljsoft.co.in (FREE to register Free to use)

Agreement for purchasing the business unit _ Dishonour of cheques _ Arbitration clause _ Petitioner contended that the matter is referred to arbitrator _ Whether criminal proceedings u/s 138 of N.I. Act are maintainable? (Yes) (See 2002 (6) LJSOFT 121)

For full text visit www.ljsoft.co.in (FREE to register Free to use)

Dear Friend,

Arbitration clause only is applicable in the civil cases and not in Criminal cases. The 138 NIA cases are of criminal nature and thus there is no applicability of the Arbitration Clause to it. The case will be registered in Criminal court only.

As rightly observed, the criminal proceedings in cheque bounce case u/s 138 of NI act will not attract arbitration clause as there is no provision for arbitration in criminal cases.