07 October 2021, Thursday

3 years ago

Pending cheque bouncing case not bar for appointing arbitrator: Bombay High Court

7 October 2021 | Rishi Kawatra v. Rishi Sekhri | Appln. for Appointment of Arbitrator No. 8 of 2021 | MS Sonak J | High Court of Bombay at Goa | 2021 SCC OnLine Bom 3342

The Goa bench of the Bombay High Court appointed an arbitrator in a case where a case under Section 138 of the Negotiable Instruments Act, 1881 was pending. The court said that the scope of criminal proceedings and the civil proceedings, is entirely different. The proceedings under Section 138 of the Negotiable Instruments Act cannot, strictly speaking, be regarded as proceedings for recovery of money simpliciter. In any case, having regard to the provisions of the said Act and the law on the subject, this cannot be a ground to resist from appointment of an arbitrator. Once, the arbitrator is appointed, no doubt, the respondent will be at liberty to raise all permissible defences, including the defence that is now raised before me.”

Advocate present in court was appointed arbitrator.

Read the judgment here.

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