If there is “arbitration” clause in an agreement, can I file 156(3) Cr.P.C. complaint against promoter?
If the act alleged against the other party amounts to a specific criminal offence, punishable under law, then, in my opinion, a criminal complaint can be filed against the opposite party despite the fact that there is an arbitration clause in the agreement.
Recently, in the case of A. Ayyasamy v. A. Paramasivam, (2016) 10 SCC 386 : AIR 2016 SC 4675, the Supreme Court dealt with a somewhat similar issue. In this case, the Supreme Court has inter alia held that where the allegations of fraud make a virtual case of criminal offence, then the court may refuse to refer the matter to arbitration. It was held that where court finds serious issue of fraud involving criminal wrongdoing then exception to arbitrability may come into existence.
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