The making of an award in civil proceedings cannot be a ground to stall or stay the criminal proceedings initiated under Section 138 of the Negotiable Instruments Act.

Leave granted.

2. The High Court, by the impugned order, has stayed the proceedings initiated by the appellants against respondents under Section 138 of the Negotiable Instruments Act pertaining to eight cheques, till the completion of civil proceedings between the parties.

3. Respondent filed a petition under Articles 226 and 227 of the Constitution of India against the complainants/appellants and the Presiding Officer of the Court as respondent No.3, seeking a declaration that the proceedings, in Criminal Complaint Nos. 169 of 2002, 113 of 2002, 114 of 2002 and 128 of 2002, initiated by the complainants against them pending in the Criminal Court, are not maintainable and the same cannot be continued in view of the award having been made in civil proceeding in favour of the accused. Further direction sought was against the appellants to withdraw those complaints and against respondent No. 3 to close the proceedings in the criminal complaints.

4. The impugned order, directs that since the subject-matter of the post-dated cheques, on which the complaints are based, was subject matter of adjudication before the Arbitrator and the Arbitrator has pronounced the award thereupon and civil proceedings, challenging the award are pending, it is fit case to stay the proceedings of the criminal complaints.

5. The complaints were filed before the award was made. It is also not in issue that objections to the award are pending. It is elementary that the civil proceedings or arbitration proceedings for recovery and the criminal proceedings under Section 138 of the Negotiable Instruments Act are based on independent cause of action. The making of the award may be a defence to such a complaint but to what extent the defence would be valid, shall depend upon the facts and circumstances of each case. Mere making of the award cannot be a ground to stall or stay the proceedings initiated under Section 138 of the Negotiable Instruments Act. That being the only ground to stay the criminal proceedings of complaint cases, we are unable to sustain the impugned order of the High Court. We are, however, expressing no opinion, one way or the other, either on the merits of complaints or that of defence that may be taken or available to the accused in accordance with law.

6. For the aforesaid reasons, we set aside the impugned order of the High Court and direct that the complaint cases would proceed in accordance with law.

7. The appeal is allowed in the above terms.