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Indian Laws - Highlights / Catch Notes

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Quashing of criminal proceedings u/s 156(3) of Cr.P.C. was ...


Criminal case quashed due to complainant's financial inability despite arbitration clause. Dispute arose from work delay, GST impact.

July 23, 2024

Case Laws     Indian Laws     SC

Quashing of criminal proceedings u/s 156(3) of Cr.P.C. was ordered as the complainant admitted inability to perform work due to financial condition, despite agreement containing arbitration clause and ongoing arbitration proceedings between parties. The dispute arose when complainant failed to complete work within stipulated time, leading to show cause notice. Complainant's response acknowledged stoppage of construction activities due to financial constraints caused by GST imposition and other hindrances, requesting settlement of accounts. The court held it to be a civil dispute arising out of contract, quashed impugned High Court order(s), and allowed appeals u/s 482 Cr.P.C.

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