Criminal Case Pending against Parties no Reason to Stay Proceedings u/Section 138 of NI Act- Delhi HC

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February 13, 2019

In this recent case, the High Court of Delhi allowed the Petition holding that there was no reason to stay proceedings under Section 138 of NI Act in view of another criminal case pending between the parties in the case.

Case name: Muskesh Aggarwal v. State (NCT of Delhi)

In the case, petitioner had instituted a criminal complaint against the respondents for offence under Section 138 of Negotiable Instruments Act, 1881 on account of non-payment inspite of notice of demand sent in the wake of dishonor of cheque.

The respondents, who were thus summoned as accused filed a criminal revision petition, by which proceedings in the criminal complaint case of the petitioner have been stayed till final decision in the case arising out of FIR,  wherein the petitioner is accused and the said FIR having been registered at the instance of the respondents.

In the impugned order, the Revisional Court considered it proper to stay the proceedings in the criminal complaint case under Section 138 NI Act against the Respondents on the ground that the same would “unnecessarily prejudice” the trial court while the criminal case arising out of the impugned FIR against the Petitioner was pending.

The High Court of Delhi however in appeal had a different view and was of the opinion that the view taken by the Revisional Court was wholly unfair and unjust.

The High Court thus observed that there was no reason why the case arising out of above-mentioned FIR should have a primacy or priority over the case of the petitioner against the opposite party.

The entire case can be accessed here.

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