Proceedings For Cheque Dishonour U/s. 138 NI Act Do Not Constitute Continuing Cause Of Action To Initiate Arbitration: Supreme Court

The Supreme Court has clarified that proceedings for cheque dishonour under Section 138 of the Negotiable Instruments Act do not constitute a continuing cause of action that allows for the initiation of arbitration. In its ruling, the Court emphasized that the dishonour of a cheque and subsequent legal actions do not qualify as a dispute that can be arbitrated under the Arbitration and Conciliation Act. The decision underscores the separation of civil remedies from arbitration processes, reinforcing the specific legal framework for cheque dishonour cases.