The main legal point established is that a valid arbitration clause in a contract can preclude the initiation of criminal proceedings related to the subject matter of the contract.

1. The applicants named - (1) M/s. Larsen and Toubro Ltd., ECC Construction Group, Bhikaji Cama Place, Somdutt Chamber-1, R.K. Puram, New Delhi 110 066 New Address at 211. 1st Floor, Okhla Industrial Estate, Phase III, New Delhi 110 020 (2) Shri L. Ramakrishnan S/o K. Laxmi Narayan, (Company Officer deputed on Construction Site) Resident Engineer, L and T, ECC Group, Somdutt Chamber-1, R.K. Puram, New Delhi -110 066 New Delhi Address at 211, 1st Floor Okhla Industrial Estate Phase III, New Delhi, 110 020 (3) Sri Pankaj Lalla, S/o Suraj Prakash Lalla, (Company Officer deputed on Construction Site) Planning Engineer, L and T, ECC Group, Somdutt Chamber 1, R.K. Puram, New Delhi 110 066 New Address at 211, 1st Floor, Okhla Industrial Estate, Phase III, New Delhi 110 020 and (4) Shri A.D. Huria, S/o Chandra Bhan Huria, Regional Project Manager (B/F), ECC Group of L and T-5, Somdutt Chamber 1, Bhikaji Cama Place, New Delhi 110 066 New Address at : 211, 1st Floor, Okhla Industrial Estate, Phase III, New Delhi 110 020 have filed this petition for the quashing of the proceedings initiated on the basis of a charge sheet filed by the Investigating Officer of the police station Barsana, District Mathura against the applicants for their prosecution in a Criminal Case No. 1326 of 2002 pending in the Court of Additional Chief Judicial Magistrate II. Mathura. A further prayer for the quashing of the orders dated 9-7-2003, 30-9-2003 and 30-10-2003 passed by the said A.C.J.M.

2. The facts of the case briefly stated as under :-

There exists a Pratishthan known as Rangeeli Mahal in Barsana, District Mathura. This Pratishthan desired for the construction of a premises Vishwa Kalyan Kendra at Barsana, Mathura. For that purpose, the Pratishthan invited tenders. The application No. 1 (M/s Larsen and Toubro Ltd.) having its Regional Office at 211, 1st Floor, Okhla Industrial Estate, Phase III, New Delhi 110 020 also filed its tender in response to the advertisement published by the above Pratishthan. The Rangeeli Mahal Prati-shthan ultimately accepted the tender of applicant No. 1 The terms and conditions were agreed between the parties. An agreement was reduced to writing in connation therewith. The agreement contained all details particularly relating to the supervision, management, obligation of the Pratishthan, construction, mode of interim payment and final payment, liabilities of the constructor and the Pratishthan, powers of the Pratishthan, owners of the Pratishthan and its representatives, supervision in respect of the execution of the contract, conditions for cancellation or reconciliation of construction in part or the whole, manner for the settling of the dispute arising between the parties in respect of the execution of the contract, delay of the performance of the construction, materials to be used in the construction, payment and jurisdiction of the Court. A copy of the agreement dated 29-5-2000 is marked as Annexure 6 to the affidavit dated 27-5-2004. After the completion of the work, respondent No. 2 (Rangeeli Mahal Pratishthan , District Mathura, U.P.) got the entire construction checked by the expert named Sri Ram Institute of Industrial Research, New Delhi at the approved site in accordance with the plan provided by the Pratishthan. On the basis of the opinion received from the above expert, opposite party No. 4 (Shri N.N. Roy S/o Shri Ramesh Chandra Roy, Rangeeli Mahal Pratishthan, Barsana Thana, Barsana, District-Mathura, U.P.) filed an application/ complaint under Section 156(3), Cr.P.C. against the applicants No. 1, 2, 3 and 4 M/s. Larsen and Toubro Ltd., applicants No. 2, 3 and 4 are its Resident Engineer, Planning Engineer and Regional Project Manager respectively before the Additional Chief Judicial Magistrate III. Mathura, who vide his order dated 22-2-2002 directed for investigation into the case against the applicants. A case was registered at the police station Barsana in pursuance of the order of the A.C.J.M., Ma