Arbitration agreement in ni act 138 case

apurba kr sharma (Querist) 27 July 2015 This query is : Resolved
hi, can u suggest me in the following case:
two persons have an agreement where 1st party has lended some money to 2nd party for construction of flat with a condition that 2nd party will allot a flat or teturn the money double to 1st party.2nd party has handed over 9 nos of post dated balnk cheques.2nd party failed to construct the same.1st party filed FIR against 2nd party which is chargesheeted us 420, filed 9 nos of complaints case under 138 ni act.
In the agreement there is an arbitration clause.
can you say in prsence of arbitration agreement whether these cases are maintainable though few courts said in negative???
thanks

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Advocate Kappil Cchandna (Expert) 27 July 2015
Sir,

Arbitration clause will not bind the Criminal prosecution and 138 cases.

Warm Regards
Kapil Chandna Advocate
9899011450

Rajendra K Goyal (Expert) 27 July 2015
Criminal cases can not be barred by arbitration clause.

apurba kr sharma (Querist) 27 July 2015
thanks. but any dispute arising out of the agreement should have been resolved by arbitration because ni act 138 can be compromised.

SAINATH DEVALLA (Expert) 28 July 2015
Nothing more to add than those mentioned by the experts.

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