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2025 Supreme(Online)(KAR) 6506
HIGH COURT OF KARNATAKA
S.R.KRISHNA KUMAR, J
M/S ITALIX LIVING SPACES PVT. LTD. – Appellant
Versus
PRADHANANI CHATRABHUJ BASSARMAL – Respondent
WP 3530 of 2023
Proceedings under Section 138 of the NI Act are not maintainable if arbitration is pending.
Headnote:This judgement concerns the maintainability of proceedings under Section 138 of the Negotiable Instruments Act, 1881, amidst pending arbitration. The court will ensure all contentions presented by both parties are considered by the Trial Court. The conclusion directs the Trial Court to assess the case expeditiously while allowing both parties an opportunity to present their arguments.
| Table of Content |
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| 1. maintainability of section 138 proceedings amidst arbitration. (Para 1 , 2) |
| 2. court directs the trial court to consider all arguments. (Para 4) |
| 3. the petitions are disposed of with directions. (Para 5) |
ORAL ORDER
After arguing the matter for some time, Sri.M.S.Shyam Sundar, learned Senior Counsel for the petitioner submits that the petitioner intends to urge various contentions before the Trial Court including the contention with regard to very maintainability of the proceedings under Section 138 of Negotiable Instruments Act, 1881 (hereinafter referred to as ‘the NI Act’ for short), in the light of arbitration proceedings already having been initiated by the respondent – complainant against the petitioner – accused, which are pending before the Arbitration Tribunal, which would render the impugned proceedings under Section 138 of NI Act not maintainable in law and the Trial Court may be directed to consider all contentions including maintainability of the complaint after providing sufficient and reasonable opportunity to the petitioner and dispose of the matter in accordance with law.
2. Per contra, Sri.B.S.Satyanand, learned counsel for the respondent submits that respondent would also urge all contentions on the merits as well as maintainability before the Trial Court and submits that all rival contentions may be kept open to be decided by the Trial Court.
3. The aforesaid submissions of both sides are placed on record.
4. In view of the aforesaid facts and circumstances and submissions made by both sides, I deem it just and appropriate to dispose of the petitions by directing the Trial Court to consider all rival contentions including contentions regarding maintainability of the proceedings under Section 138 of NI Act in the light of the pending arbitration proceedings and dispose of the complaint filed by respondent, as expeditiously as possible, after providing sufficient and reasonable opportunity to both sides.
5. Leaving open all contentions to be decided by the Trial Court, the petition stands disposed of.
