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SANJAY KUMAR, SATISH CHANDRA SHARMA
Prakash Chimanlal Sheth – Appellant
Versus
Jagruti Keyur Rajpopat – Respondent
Based on the provided legal document, the key points are as follows:
The primary issue in the case concerns the territorial jurisdiction for filing complaints related to offences under Section 138 of the Negotiable Instruments Act, 1881 (N.I. Act) (!) .
The appellant maintained his bank account with the Kotak Mahindra Bank at its Bendurwell, Mangalore Branch, and the cheques issued by the respondent were deposited at the Mumbai Branch of the same bank for credit to his account (!) .
The appellant had previously maintained his account at the Mumbai Branch but transferred it to the Mangalore Branch before the filing of the complaint (!) .
According to Section 142(2)(a) of the N.I. Act, the jurisdiction for offences under Section 138 is vested in the court where the cheque is delivered for collection, i.e., the branch of the bank where the payee maintains the account (!) .
The Court held that since the appellant’s account was with the Mangalore Branch at the time of presentation of the cheques, he was justified in filing the complaint there. The earlier assumption that his account was with the Mumbai Branch was incorrect (!) (!) .
The orders of the lower courts, which had held that the complaint should be filed at the Mumbai Branch, were found to be erroneous and contrary to the provisions of Section 142(2)(a) (!) .
The appeals were allowed, and the case was remanded for the competent court at Mangalore to entertain and adjudicate the complaint cases in accordance with law (!) .
All pending applications were to be closed, and the previous orders confirming the jurisdiction of the Mumbai court were set aside (!) .
These points summarize the court’s reasoning and final decision regarding the correct territorial jurisdiction for filing complaints under Section 138 of the N.I. Act based on the location of the bank account maintained by the appellant.
JUDGMENT
SANJAY KUMAR, J
1. Leave granted.
2. The short issue in these appeals is as to where the appellant was required to file his complaints in relation to offences punishable under Section 138 of the Negotiable Instruments Act, 1881 (for brevity, ‘N.I. Act’).
3. The appellant’s case was that Keyur Lalitbhai Rajpopat borrowed a sum of Rs. 38,50,000/- from him and the respondent herein, viz., Jagruti Keyur Rajpopat, being the wife of Keyur Lalitbhai Rajpopat, stood as a guarantor for the repayment of the loan. It appears that she also availed financial assistance from the appellant and four cheques came to be issued by her during September, 2023, in discharge of her husband’s liability and her own liability. These cheques were deposited by the appellant at Kotak Mahindra Bank, Opera House Branch, Mumbai. However, they were dishonored due to insufficiency of funds, as was intimated to the appellant on 15.09.2023. Thereupon, he filed four complaint cases in C.C. Nos. 1258, 1259, 1260 and 1261 of 2023 under Section 200 Cr.P.C. read with Section 138 of the N.I. Act before the learned Judicial Magistrate First Class, Fifth Court, Mangalore. However, by order dated 12.12.2023, the learned
Dishonour of cheque – Section 142(2)(a) of N.I. Act vests jurisdiction apropos an offence under Section 138 thereof in the Court where cheque is delivered for collection, that is, through an account ....
Section 142 (2) of Negotiable Instruments Act read cognizance of offences.
Jurisdiction for offences under Section 138 of the Negotiable Instruments Act is determined by the location of the bank where the cheque is presented for collection.
Territorial jurisdiction under S.138 of the NI Act may be established where any act related to the offence occurred.
Point of law : Section 142(2)(a) of the Act coupled with the explanation to the same makes it clear that even if the payee presents the cheque at another branch of his Bank, the home branch where he ....
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