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Namit Mehta   03 January 2024

Territorial jurisdiction in case of section 138

So I am an accused in cheque bouncing case with 4 cheques 11 lac each . My bank branch is Jaipur and drawer bank branch is bikaner. He presented 3 cheques in Jaipur and 1 in bikaner.  What should be territorial jurisdiction. Thank you for your help in advance 

I read the following somewhere but cannot dedue the implication my case.

Further, “Section 142(2)(a) along with Section 142, makes clear that, when a cheque is delivered or issued to a person with liberty to present the cheque for collection at any branch of the bank where the payee or holder in due course, then, the cheque shall be deemed to have been delivered or issued to the branch of the bank, in which, the payee or holder in due course, as the case may be, maintains the account, and within the jurisdiction of the court, where such cheque was presented for collection, will have jurisdiction to entertain complaint alleging commission of an offense punishable under Section 138 of the NI Act”, added the Bench. Also Read - Govt Can Decide To Fill Vacancies That Arose Prior Amendment Of Rules In Accordance With Unamended Rules: Kerala HC The Bench went on to elucidate that the word ‘delivered’ used in Section 142(2)(a) of the NI Act has no significance and significance must be given to the text ‘for collection through an account’. Accordingly, the Bench clarified that delivery of the cheque takes place where the cheque was issued and presentation of the cheque will be through the account of the payee or holder in due course, and the said place is decisive to determine the question of jurisdiction. The High Court therefore stated that reliefs cannot be granted, since the penal consequence on dishonor of the cheque should have to be suffered by the person who issued the cheque and the same cannot be delegated to another person, in any manner. 



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 13 Replies

T. Kalaiselvan, Advocate (Advocate)     03 January 2024

The jurisdiction will fall in the drawee bank's location.

If the drawee has an account in a Bank at Bikaner then this complaint will be maintainable in Bikaner also.

Dr. J C Vashista (Advocate )     04 January 2024

Territorial jurisdiction of a complaint u/s 138 NI aCT, 1881 is dealt in Section 142(2) of the Act (amendment 2015) which reads as:

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    Section 142.   Cognizance of offences.Previous    Next

    1[(1)] Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974),


    (a) no court shall take cognizance of any offence punishable under section 138 except upon a complaint, in writing, made by the payee or, as the case may be, the holder in due course of the cheque;
    (b) such complaint is made within one month of the date on which the cause of action arises under clause (c) of the proviso to section 138:
    2[Provided that the cognizance of a complaint may be taken by the Court after the prescribed period, if the complainant satisfies the Court that he had sufficient cause for not making a complaint within such period;]
    (c) no court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under section 138.].
    3[(2) The offence under section 138 shall be inquired into and tried only by a court within whose local jurisdiction,--
    (a) if the cheque is delivered for collection through an account, the branch of the bank where the payee or holder in due course, as the case may be, maintains the account, is situated;

    or
    (b) if the cheque is presented for payment by the payee or holder in due course, otherwise through an account, the branch of the drawee bank where the drawer maintains the account, is situated.

     

    Explanation.-- For the purposes of clause (a), where a cheque is delivered for collection at any branch of the bank of the payee or holder in due course, then, the cheque shall be deemed to have been delivered to the branch of the bank in which the payee or holder in due course, as the case may be, maintains the account.]

    Inserted by Act 26 of 2015, s. 3 (w.e.f. 15-6-2015).

    Consequently the jurisdiction will be "where the cheque(s) was/were presented for collection".

    Namit Mehta   04 January 2024

    Sir what is the difference between cheque is presented vs cheque is presented? Thank you for your input 

    Advocate Bhartesh goyal (advocate)     04 January 2024

    Complaint  can be filed only in the court whose jurisdiction drawer's bank situates and  the cheque is presented for collection of money.

    Namit Mehta   04 January 2024

    On return memo the addrress and seal of the bank is SBI Jaipur  I dint know what is the home branch of the drawer and there is no proof of that the drawers home branch . How can I make sure that his home branch is Bikaner. He has only claimed that his home branch is Bikaner but there is no proof attached. 

    P. Venu (Advocate)     04 January 2024

    What are the facts as well the context for this query? 

    Namit Mehta   05 January 2024

    Sir I am accused in a case witg 4 cheques of 11 lacs filed against me which I only gave as security to a supplier but later made entire payment. Since I am of non legal background and I am reading and evaluating the file muslef before consulting a lawyer . I trying to get some help online as I am studying the file. 

    The notice given by the complainant had only the advocates sign on last page and no party sign was there. Is a notice unsigned by complaint and only signed by advocate maintainable? Kindly help me . Thank you 

    P. Venu (Advocate)     06 January 2024

    It is of no consequence that the complainant has not signed the Notice. The crucual issue is, have you replied to the Notice? If so, have brought ou that the said cheques were given as security and that the dues have have already been paid?

    Dr. J C Vashista (Advocate )     07 January 2024

    The dishonoured cheque(s) drawn as "security" also attract punishment under section 138 of the NI Act,1881 till presumption under section 139 of the Act is not rebutted under section 118 of the Act and onus to rebuttal is upon the drawee (the signing person / accused).

    T. Kalaiselvan, Advocate (Advocate)     07 January 2024

    The notice sent to you even without the signature of the concerned party  also legally valid.

    Namit Mehta   09 January 2024

    Thank you for guiding me and helping me. Also since the cheques were given for partnership firm and the complainant only gave notice to one of the partners and dint not arraign the unregistered partnership or mentioned in the notice. Will the notice still be valid. 

    Thank you very much for your help . I really appreciate your inputs 🙏🙏

    Dr. J C Vashista (Advocate )     10 January 2024

    Thank you for your appreciations of experts providing social service to needy litigants.

    Namit Mehta   11 January 2024

    Dear Dr. JC Vashishta Sir , All platforms and forums have a specific purpose. As far as I could decipher i thought the purpose of this forum is to provide social service to needy litigants like me. For those who want to volunteer to help. For those who don't want to volunteer   should not demean the needy litigant instead they should choose not to volunteer at all. 

    Also I have discussed the case here on this forum  if any advocate can help me professionally via email and give professional guidance for  predefined fees. Kindly DM 

    Humble Needy Applicant 


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