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

Contention that there is arbitration clause in the agreement, therefore, complaints are not maintainable – Held, this argument has no force -- When the cheques have been dishonoured and returned back unpaid by the Bank and legal notices have been sent, then non-payment of the amount within prescribed period gave cause of action to file the complaints under Section 138 of the Negotiable Instruments Act.

(P&H HC) Decided on: 09.05.2017