STATE OF RAJASTHAN vs KALYAN SUNDARAM CEMENT INDS.

The Supreme Court held that the pendency of criminal proceedings does not impede the continuation of civil suits, establishing that civil suits should not be stayed merely due to ongoing criminal cases. The Court criticized the High Court of Rajasthan for its erroneous assumption that defendants in criminal cases would need to disclose their defense in civil suits, which is not a correct legal principle. Consequently, the Supreme Court allowed the appeal and set aside the High Court's order, affirming the right to proceed with civil suits despite the criminal proceedings under Section 138 of the Negotiable Instruments Act and Section 420 IPC.