STATE OF RAJASTHANversusM/S. KALYAN SUNDARAM CEMENT INDUSTRIES LTD. AND ORS.

\
                             STATE OF RAJASTHAN                                 A
                                         v.
                     MIS. KALYAN SUNDARAM CEMENT
                         INDUSTRIES LTD. AND ORS.

                               FEBRUARY 12, 1996
                                                                                B
                [K. RAMASWAMY AND G.B. PATTANAIK, JJ.]

            Negotiable Instrnments Act, 1881/Jndian Penal Code, 1860 :

           Section 138/420-Bouncing of cheques-Suits filed for recove1y-        C
    Criminal proceedings also initiated-High Court staying proceedings of the
    civil suits pending disposal of criminal cases-Held: Pendency of criminal
    matters not an impediment to proceed with civil suits-Hence the principle
    adopted by the High Court not correct.

            CIVIL APPELLATE JURISDICTION: Civil Appeal No. 3644 of D
    1996.

         From the Judgment and order dated 16.11.94 of the Rajasthan High
    Court in S.B. Civil Revision Petition No. 209 of 1994.

         Aruneshwar Gupta, Manoj K. Das and ,Ms. Namita Narula for the          E
    Appellant.

         Arun Jaitely, D.A. Dave, Bhaskar Pradhan, Ms. Ruby Ahuja, Mrs.
    M. Karanjawala , S.S. Kha,nduja, B.K. Satija and Y.P. Dhingra, for the
    Respondents.
                                                                                F
            The Judgment of the Court was delivered by

            Leave granted.

          This appeal by Special leave arises from the order of the learned
    single Judge made in Civil Revision No. 209/94 on 16.11.1994 of the High G
    Court of Rajasthan. Admittedly, the respondent-Company after inviting
    tenders had executed an agreement on 13.4.1969 for execution of the
    project. Thereafter, three post dated cheques of dates between May and
    July 1989 were given for a sum of Rs. 6, 87, 100 each of which got bounced.
    After issuing said notice, the suits were filed for recovery. Simultaneously H
                                         463
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    464                   SUPREME COURT REPORTS                   [1996] 2 S.C.R.

A   proceedings were initiated under Section 138 of the Negotiable instrument
    Act and also under Section 420 IPC in three complaints, CC Nos. 219, 220
    and 254 of 1989. The High Court stayed the proceedings of the civil suits
    pending disposal of the criminal cases. This appeal came to be filed against
    the said order.

B          It is settled law that pendency of the criminal matters would not be
    an impediment to proceed with the civil suits. The criminal court would
    deal with offence punishable under the Act. On the Other hand, the courts
    rarely stay the criminal cases and only when the compelling circumstances
    require the exercise of their power. We have never come across stay of any
C   civil suit by the courts so far. The High Court of Rajasthan is only an
    exception to pass such orders. The High Court proceeded on wrong
    premise that the accused would be expected to disclose their defence in
    the criminal case by asking them to proceed with the trial of the suit. It is
    not a correct principle of law. Even otherwise it no longer subsists, since
    many of them have filed their defences in the civil suit. On principle of law,
D   we hold that the approach adopted by the High Court is not correct. But
    since the defence has already been filed nothing survives in this mat~er.
                                                                                              ·'
           The appeal is accordingly allowed. The order of the High Court is
    set aside. No costs.

E   G.N.                                                        Appeal Allowed.