diff --git a/erpnext/controllers/queries.py b/erpnext/controllers/queries.py
index 7b4566a..eeb659d 100644
--- a/erpnext/controllers/queries.py
+++ b/erpnext/controllers/queries.py
@@ -132,7 +132,8 @@
 	return frappe.db.sql("""select {field} from `tabSupplier`
 		where docstatus < 2
 			and ({key} like %(txt)s
-				or supplier_name like %(txt)s) and disabled=0
+			or supplier_name like %(txt)s) and disabled=0
+			and (on_hold = 0 or (on_hold = 1 and CURDATE() > release_date))
 			{mcond}
 		order by
 			if(locate(%(_txt)s, name), locate(%(_txt)s, name), 99999),