Legal Question in Criminal Law in India
Based on a contract complainant filed a case against the accused under sec:138 of N.I.Act. But in the contract there is an Arbitration Clause. My question is without referring the matter to arbitration whether the case filed by complainant under 138 of NI Act in a magistrate court is maintainable.Explain with recent judgements please.
8 Answers from Attorneys
Section 138 negotiable instrument act is a special act and complaint under s.138 cam be filed
Section 138 negotiable instrument act is a special act and complaint under s.138 can be filed
the arbitration clause is no bar to filing a complaint under NI Act. the arbitration clause can be invoked in civil matters of recovery but the criminal complaint can be settled through arbitration as well.
I differ with the above opinions because the section 138 NI act can only be invoked in case of dishonouring of cheque and not the contract .
Arbitration clause is inconsequential for a prosecution.
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