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TMI Blog2024 (4) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioners that the complaint under Section 138 of the NI Act is not maintainable in view of the ongoing arbitration proceedings between the parties. Additionally, whether the aforesaid cheque was given as a security or not is something which can only be proved as a matter of defence during trial. There is no merit in the present petition - the present petition is dismissed. - MR. AMIT BANSAL, J. For the Petitioners : Mr. Rajiv Kumar and Mr. Sanjeev Gupta, Advocates. For the Respondent : Mr. Ravi Prakash and Mr. Astu Khandelwal, Advocates. ORDER The present petition has been filed seeking quashing of complaint under Section 138 of the Negotiable Instruments Act, 1881 (NI Act) filed by the respondent company/complainant against the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings have been initiated, the complaint under Section 138 NI Act is not maintainable. It is further submitted that the amount due from the petitioners to the respondent company will be crystalised only upon conclusion of the arbitration proceedings and therefore, the deposit of the cheque by the respondent company was premature. 4. Counsel appearing on behalf of the respondent company has placed reliance on the judgment of the Supreme Court in Sri Krishna Agencies v. State of A.P. Anr., (2009) 1 SCC 69, to submit that the arbitration proceedings and proceedings under Section 138 of the NI Act are separate and independent proceedings and both can proceed simultaneously. 5. I have heard the counsels for the parties. 6. The relevant part of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The decision in Trisuns Chemical Industry case appears to squarely cover this case as well. 7. It is clear from the above that the arbitration proceedings as well as the proceedings under Section 138 of the NI Act arise from separate causes of action and the pendency of the arbitration proceedings would not affect the proceedings under Section 138 of the NI Act. There is no merit in the contention of the petitioners that the complaint under Section 138 of the NI Act is not maintainable in view of the ongoing arbitration proceedings between the parties. Additionally, whether the aforesaid cheque was given as a security or not is something which can only be proved as a matter of defence during trial. 8. There is no merit in the present petit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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