Section 8 -- Negotiable Instruments Act, 1881 (26 of 1881), Section 138 -- Cheque bounce case – Arbitration proceedings – No bar to proceed u/s 138 -- Even if arbitration proceedings have taken place, that cannot be a bar to the continuation of proceedings under Section 138 of the Act -- If the arbitration proceedings have been finalized and award has been pronounced, the Court deciding the matter under Section 138 of the Act would certainly look into the aspect whether there exists some legal liability for issuance of cheque or not.

(P&H HC) Decided on: 05.12.2018