ORDER

1. Leave granted.

2. This appeal is directed against the judgment and order dated 24th September, 2007, passed by the Andhra Pradesh High Court in Criminal Petition No. 4508 of 2007 quashing the proceedings, being C.C. No. 982 of 2005, on the file of the IInd Additional Chief Metropolitan Magistrate, Hyderabad, under Section 138 of the Negotiable Instruments Act, 1981 (for short the Act) in exercise of powers under Section 482 of the Code of Criminal Procedure.

3. As would appear from the complaint, the same was filed on account of stop payment orders issued with regard to three cheques of Rs. 5 lakhs each.

4. Before the High Court, it was sought to be contended on behalf of respondent No. 2 that since the appellant herein had already taken recourse to arbitration proceedings, the dispute was obviously of a civil nature and the criminal complaint could not be proceeded with. Accepting the statements made on behalf of respondent No. 2, the High Court quashed the complaint as indicated hereinabove.

5. Mr. Adhyaru, learned senior counsel appearing in support of the appeal, submitted that the High Court has apparently confused the issue relating to the continuance of the arbitra