Whether dispute can be referred to arbitration even though disputed act is an offence?

 

Chambers of Ishaan Garg

Ch. No. 217, Western Wing, District & Sessions Court, Tis Hazari, New Delhi, Delhi 110054

+91 8851742417, +91 8800386163


The High Court dismissed the petition filed under Section 482 Cr.P.C. by the impugned order placing reliance, in particular, on two decisions of this Court, one Trisuns Chemical Industry (supra) and Medchi Chemicals & Pharma (P) Ltd. v. Biological E. Ltd. & Ors., [2000] 3 SCC 269. In the first case, this Court held that the exercise of inherent power should be limited to very extreme exceptions. Further it was held that referring the disputes to arbitration is not an effective substitute for a criminal prosecution when the disputed act is an offence. It may be noted that the said judgment gets attracted only when the disputed act is an offence, which the High Court has failed to notice. No doubt, exercise of inherent power under Section 482 Cr.P.C. by High Court should be limited to very extreme exceptions but in a case where ingredients of alleged offences are not satisfied even prima facie, it cannot be said that power under Section 482 Cr.P.C. should not be exercised to quash the process issued by a Magistrate. In the case of Smt. Nagawwa (supra), it is laid down that in such a case, power under section 482 Cr.P.C. can be exercised to quash the process issued by a Magistrate.


SUPREME COURT OF INDIA

CASE NO.:

Appeal (crl.)  1072 of 2001

S.W. PALANITKAR Vs STATE OF BIHAR AND ANR.


DATE OF JUDGMENT: 18/10/2001

BENCH:

D.P. MOHAPATRA & SHIVARAJ V. PATIL

Citation;2001 ( 4 )   Suppl.  SCR  397