JUDGMENT

Deepak Gupta, J.

Prayer in this petition filed under Section 482 Cr.P.C. is to quash criminal complaint No.5086/2 dated 06.07.2010 titled "Cotton County Retail Ltd. v. M/s Chlorophyl & Others", under section 138 of the Negotiable Instruments Act, 1881 [for short 'the NI Act'] (Annexure P-8) pending before in the court of ld. JMIC, Ludhiana, with all subsequent proceedings arising therefrom.

2. Complaint (Annexure P8) was filed by Cotton County Retail Limited (now respondent) seeking prosecution of accused - a partnership firm M/s Chlorophyl and its two partners Sajal Kumar Basu and Soma Basu (now petitioners), submitting that accused had been purchasing garments/accessories from the complainant-company on credit basis. After adjusting all the payments made by the accused, there was a debit balance of Rs.14,47,606.69 as on 16.02.2010. In order to discharge their part liability, accused issued a cheque No.339181 dated 04.05.2010 for Rs.5 lakh drawn on Punjab National Bank, Mecheda, Maidnapur (W.B.). The cheque was handed over to the complainant at their Ludhiana office with assurance that it shall be encashed on presentation. However, when the complainant presented the cheque to its banker i.e. State Bank of Patiala, Overseas Branch, Ludhiana on 04.05.2010, the same was returned dishonoured vide Bank return Memo dated 05.05.2010 with remarks "Payment Stopped by Drawer". Complainant then issued a legal notice dated 29.05.2010, sent through registered postal receipt dated 31.05.2010 as well as through UPC Post, calling upon the accused to pay the cheque amount within 15 days from the date of receipt of the notice. However, accused failed to make payment of the cheque amount within the stipulated period, compelling the complainant-respondent to file the complaint (Annexure P8). After recording preliminary evidence, the Court of ld. JMIC vide its order dated 06.07.2010 directed summoning of all the accused (now petitioners) to face prosecution under section 138 of the NI Act.

3. (i) Seeking quashing of the aforesaid complaint, it is contended by the accused (petitioners herein) that complaint is the gross abuse of the process of law, inasmuch as specific restraint order had been issued by ld. District Judge, Purba Medinipur, West Bengal, whereby complainant (respondent herein) was restrained from encashing the cheque. Concerned Bank Manager was also directed not to release any amount of money qua said cheque till 21.07.2009. Said interim order was extended from time to time till 21.12.2009 and was never vacated till date. Besides, the court at Ludhiana, where complaint was filed, was devoid of territorial jurisdiction. Still further, it is contended that dispute is purely of civil nature and that proceedings under section 9 of the Arbitration and Conciliation Act are already pending before District Judge, Purba Medinipur, West Bengal, where the restraint order was passed. Even the proceedings under section 11(4) of the Arbitration and Conciliation Act, for appointment of the Arbitrator are pending before the Court.

(ii) Elaborating further, petitioners referred about an agreement dated 21.08.2008 (Annexure P1) executed between the parties, which contains the arbitration clause. It is submitted that an amount of Rs.50,000/- was deposited by the petitioners besides a bank guarantee of Rs.9 lakh with the respondent. It is alleged that respondent-complainant, unilaterally changed the terms and conditions of the agreement by sending letters dated 27.03.2009 and 01.06.2009. It is also alleged that in the meantime, petitioner-firm lost cheque No.339181 of Punjab National Bank, Mecheda Branch, which was undated, b