KSR, J Crl.P.No.4591 of 2019 APHC010236172019 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3239] THURSDAY, THE FOURTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE K SURESH REDDY CRIMINAL PETITION NO: 4591/2019 Between: 1. BOLLA CHOWDARY, S/O.RAMALAH, AGED 56 YEARS, R/O.PLOT NO.205, SAI ANUHYA ENCLAVE, 7/2, CHANDRAMOULI NAGAR, GUNTUR. ...PETITIONER/ACCUSED AND 1. SHRIRAM CIT UNION FINANCE LTD, VIJAYAWADA BRANCH, REP. BY ITS AUTHORISED PERSON, MR.K.SAMBASIVA RAO,S/O. PITCHESWARA RAO, AGED ABOUT 32 YEARS, R/O. VIJAYAWADA 2. STATE OF AP, REP. BY ITS PUBLIC PROSECUTOR, HIGH COURT OF AP, VELAGAPUDI AT AMARAVATHI ...RESPONDENT/COMPLAINANT(S): Petition under Section 437/438/439/482 of Cr.P.C and 528 of BNSS praying that in the circumstances stated in the Memorandum of Grounds of Criminal Petition, the High Court pleased to call for the records pertaining to the C.C.No. 4100/2018 on the file of the Court of the IV Additional Chief Metropolitan Magistrate at Vijayawada, Krishna District, and quash the same, and pass IA NO: 1 OF 2019 Petition under Section 482 of Cr.P.C and 528 of BNSS praying that in the circumstances stated in the Memorandum of Grounds of Criminal Petition, the High Court may be pleased to stay all further proceedings in KSR, J Crl.P.No.4591 of 2019 C.C.No.4100/2018 on the file of the Court of the IV Additional Chief Metropolitan Magistrate at Vijayawada, and dispense with the appearance of the accused, pending disposal of the Criminal Petition before this Hon'ble Court, and pass IA NO: 2 OF 2019 Petition under Section 482 of Cr.P.C and 528 of BNSS praying that in the circumstances stated in the Memorandum of Grounds of Criminal Petition,the High Court may be pleased to extend the interim order dated 06.08.2019 in IA No. 1 of 2019 in Crl.P.No. 4591 of 2019, pending disposal of the Crl.P. before this Hon'ble Court and pass Counsel for the Petitioner/accused: 1. SIVA RAMA KRISHNA KOLLURU Counsel for the Respondent/complainant(S): 1. O UDAYA KUMAR 2. PUBLIC PROSECUTOR (AP) The Court made the following: KSR, J Crl.P.No.4591 of 2019 IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI THURSDAY, THIS THE FOURTH DAY OF SEPTEMBER, TWO THOUSAND AND TWENTY FIVE PRESENT: HONOURABLE SRI JUSTICE K SURESH REDDY CRIMINAL PETITION No.4591 of 2019 ORDER: The Criminal Petition is filed seeking to quash the proceedings in C.C.No.4100/2018 on the file of the Court of IV Additional Chief Metropolitan Magistrate at Vijayawada initiated by the 1st respondent. 2. The petitioner/sole accused filed the present application under Section 482 Cr.P.C. The 1st respondent filed a private complaint alleging the offence under Section 138 of Negotiable Instruments Act. The 1st respondent filed complaint alleging that the petitioner has availed loan of Rs.50,00,000/- (Rupees fifty lakhs only) agreeing to repay in 60 equal monthly installments of Rs.1,52,083/- with interest at 16% per annum. Subsequently, the petitioner defaulted in paying the installments and the 1st respondent invoked arbitration clause by filing Arbitration Case No.433 of 2016 and an award was passed on 09.6.2017. 3. Learned counsel for the petitioner contends that as the 1st respondent has already invoked the arbitration clause, he cannot enforce the cheque issued towards installments. On the said ground, he seeks to quash the proceedings initiated against him. KSR, J Crl.P.No.4591 of 2019 4. Heard both sides. 5. Learned counsel for the petitioner contends that the 1st respondent/ complainant has already initiated arbitration proceedings with regard to the same transaction, as such he contends that the present complaint is not maintainable as he has already invoked arbitration clause. 6. On the other hand learned counsel for the 1st respondent contended that mere initiation of arbitration proceedings, is not a bar for launching criminal proceedings under Section 138 of the Negotiable Instruments Act. He relied on the judgment of the combined High Court of Andhra Pradesh reported in between Annam Associates vs. State of A.P.1. The combined High Court, in the said judgment, held as follows: “There is no force in the contention raised by the learned counsel appearing for the petitioners that the complainant cannot resort to criminal proceedings in respect of the same transaction, filing a civil suit or initiating arbitration proceedings is no bar for filing a complaint under Section 138 of the Negotiable Instruments Act.” 7. This Court perused the entire material on record. 8. Time and again, this Court, as well as Hon’ble Supreme Court has held in catena of decisions that initiation of civil proceedings or arbitration proceedings is not a bar for launching criminal prosecution under Section 138 of the Negotiable Instruments Act. 1 MANU/AP/1845/2014 KSR, J Crl.P.No.4591 of 2019 9. In view of the above facts and circumstances, there are no merits in the present Criminal Petition and the same is liable to be dismissed. 10. Accordingly, the Criminal Petition is dismissed. Consequently, miscellaneous petitions, if any, pending shall stand closed. ________________________ JUSTICE K.SURESH REDDY Date: 04.9.2025 RD KSR, J Crl.P.No.4591 of 2019 THE HON’BLE SRI JUSTICE K SURESH REDDY CRIMINAL PETITION No.4591 of 2015 Date: 04.9.2025 RD