M/S SRI KRISHNA AGENCIES vs STATE OF A.P.

The Supreme Court held that the High Court erred in quashing the criminal complaint under Section 138 of the Negotiable Instruments Act, 1981, on the grounds of ongoing arbitration proceedings. The Court established that the existence of arbitration does not bar criminal proceedings arising from separate causes of action, as affirmed in Trisuns Chemical Industry vs. Rajesh Agarwal (1999) 8 SCC 686. The appeal was allowed, and the order of the High Court was set aside, restoring the complaint for further proceedings.