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PETITIONER: STATE OF RAJASTHAN

       Vs.

RESPONDENT: M/S.KALYAN SUNDARAM CEMENT INDUSTRIES LTD. & ORS.

DATE OF JUDGMENT:       12/02/1996

BENCH: RAMASWAMY, K. BENCH: RAMASWAMY, K. G.B. PATTANAIK (J)

CITATION:  1996 SCC  (3)  87        JT 1996 (3)   162  1996 SCALE  (2)403

ACT:

HEADNOTE:

JUDGMENT:                          O R D E R      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  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,   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.      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  power. We  have never  come across stay of any civil suits 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 longer subsists, since  many of  them have  filed their defences in the civil  suit. On  principle of  law,  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 matter.      The appeal  is accordingly  allowed. The  order of  the

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High Court is set aside. No costs.