N.K.Assumi (Advocate) 09 January 2011

Pendency of civil dispute can stay 138 Proceedings?

If Civil suit is pending is it a ground to stay criminal complaint proceedings under secrion 138 of the NIA?

3 Replies

A Truthseeker ( A retired Indian citizen) 09 January 2011

yes,it should. as civil suits are to be decided first to fix the liability, and the result of civil suit is binding on the criminal court.

CHANDAN MAHAPATRA (COMPANY SECRETARY) 16 January 2011

I would disagree to the view stated above and in contentions of my stance I provided as under:-

1. Both Civil and criminal proceedings (S.138) aganist the drawer can continue simultaneously. ( Harbhajan Singh v State of Uttar Pradesh (2005) I JCC 69 (All)]

The civil and criminal remedies are not mutually exclusive but are co-extensive.

2. The trial of criminal cases cannot be stayed only for the reason that a civil suit involving an identical dispute is pending between the parties and that the other party has filed a counter claim [Maftal Finance Case]