M/S Sri Krishna Agencies vs State Of A.P.& Anr

The Supreme Court held that the Andhra Pradesh High Court erred in quashing the criminal proceedings under Section 138 of the Negotiable Instruments Act, 1981, on the grounds that arbitration proceedings were ongoing. The Court established that the existence of arbitration does not bar the continuation of criminal proceedings arising from separate causes of action, referencing the precedent set in Trisuns Chemical Industry vs. Rajesh Agarwal. The appeal was allowed, and the High Court's order was set aside, restoring the complaint for further proceedings.