J. B. PARDIWALA, R. MAHADEVAN
Jai Balaji Industries Ltd. – Appellant
Versus
HEG Ltd – Respondent
Certainly. Based on the provided legal document, the key points are as follows:
Jurisdiction to try a complaint under Section 138 of the Negotiable Instruments Act, 1881, in respect of a cheque delivered for collection through an account, is vested in the court within the local jurisdiction of the bank branch where the payee maintains their account. This is applicable even if the cheque was presented or dishonoured elsewhere (!) (!) .
The act of drawing a cheque on a bank account of another person does not automatically make the drawer liable under Section 138, as liability is tied to the person who maintains the account with the bank. Establishing the specific branch where the account is maintained is essential for determining jurisdiction (!) (!) .
For determining jurisdiction, it is necessary to identify the specific branch of the bank where the account is maintained, not merely the bank itself. The relationship between the account holder and the bank, as well as the location of the specific branch, is crucial (!) (!) .
The delivery of an account payee cheque is deemed to have occurred at the branch where the payee maintains their account, especially when considering the legal fiction created by the Explanation to Section 142(2)(a). This ensures that jurisdiction is based on the location of the payee’s "home branch" (!) (!) .
The stage at which proceedings are pending influences transferability of cases. If evidence has already been recorded, transferring cases to the appropriate jurisdiction may be procedurally improper, and courts may allow proceedings to continue from the stage they are in to avoid prejudice (!) (!) .
The enactment of the Amendment Act, 2015, clarified that jurisdiction for trial is limited to the court within the local jurisdiction of the bank branch where the cheque was delivered for collection or dishonoured, thus narrowing the scope of wider jurisdiction previously recognized (!) (!) (!) .
The law emphasizes that the place of offence and the specific acts constituting the offence are critical for establishing jurisdiction, rather than the location of the bank where the cheque was dishonoured or where notices were sent. The offence is localized at the place where the cheque is dishonoured or delivered for collection (!) (!) (!) .
The legal relationship between the drawer, drawee, and payee, along with the specific act of delivery and presentation, determines the jurisdiction. The "home branch" of the account holder plays a pivotal role in this determination (!) (!) (!) .
The legislative amendments and judicial interpretations aim to prevent misuse of jurisdictional provisions and ensure that trials are conducted in the appropriate local courts, based on the actual location of the relevant bank branches and acts (!) (!) (!) .
When proceedings have reached advanced stages, such as the recording of evidence, courts may exercise discretion to allow cases to proceed in the current jurisdiction or to transfer them, ensuring procedural fairness and avoiding prejudice (!) (!) .
Please let me know if you need further elaboration or assistance.
JUDGMENT :
J.B. PARDIWALA, J.
For the convenience of exposition, this judgment is divided into the following parts:
INDEX
| A. | FACTUAL MATRIX |
| B. | ISSUES FOR DETERMINATION |
| C. | ANALYSIS |
| (i) | Position of law as regards jurisdiction of courts prior to the Amendment Act, 2015 |
| a. | Analysis of the observations of this Court in Bhaskaran |
| b. | Analysis of the observations of this Court in Harman Electronics |
| c. | Analysis of the observations of this Court in Dashrath Rupsingh Rathod |
| (ii) | Position of law as regards jurisdiction of courts after the enactment of the Amendment Act, 2015 |
| a. | Meaning of the expressions “delivered for collection through an account” and “presentation for payment otherwise through an account” |
| b. | Meaning of the expression “maintains an account” under Section 142(2) |
| c. | Conjoint reading of Section 142(2)(a) and the Explanation thereto 38 |
| (iii) | Determination of the issues framed |
| a. | Whether the MM, Kolkata has the jurisdiction to try the complaint? |
| b. | Whether a case of transfer of the complaint from the court of JMFC, Bhopal to MM, Kolkata i |
Dashrath Rupsingh Rathod v. State of Maharashtra reported in (2014) 9 SCC 129 [Para 3]
K. Bhaskaran v. Sankaran Vaidhyan Balan
Harman Electronics (P) Ltd. v. National Panasonic India (P) Ltd.
Bijoy Kumar Moni v. Paresh Manna
Bridgestone India (P) Ltd. v. Inderpal Singh
Yogesh Upadhyay v. Atlanta Ltd.
Devadoss v. Veera Makali Amman Koil Athalur
Shri Sendhur Agro & Oil Industries v. Kotak Mahindra Bank Ltd.
None of the cases listed explicitly indicate that they have been overruled, reversed, or explicitly treated as bad law based solely on the provided descriptions. There are no keywords such as "overruled," "reversed," "criticized," or "disapproved" that suggest any case has been invalidated or overruled by subsequent judgments. Therefore, based on the available information, no case is identified as bad law.
[Followed / Affirmed]
None explicitly indicated. The descriptions mainly describe legal principles or jurisdictional rules, without referencing subsequent affirmations.
[Distinguished / Clarified / Interpreted]
Dashrath Rupsingh Rathod VS State of Maharashtra - 2014 5 Supreme 641: This case clarifies the elements constituting the offence under Section 138 and discusses jurisdiction, but there is no indication it has been distinguished or overruled.
Yogesh Upadhyay VS Atlanta Limited - 2023 2 Supreme 328: Clarifies the transfer of cases under Section 406 Cr.P.C. in relation to offences under Section 138, but no indication of subsequent treatment.
Bijoy Kumar Moni VS Paresh Manna - 2025 2 Supreme 109: Provides detailed interpretation of liability in case of companies and authorized signatories, but no indication of subsequent judicial treatment.
BRIDGESTONE INDIA PVT. LTD. VS INDERPAL SINGH - 2015 0 Supreme(SC) 1087: Clarifies jurisdiction based on the place where the cheque was dishonoured, referencing a legislative amendment, but no indication it has been overruled or criticized.
Prakash Chimanlal Sheth VS Jagruti Keyur Rajpopat - 2025 6 Supreme 281: Reiterates jurisdiction based on where the cheque was delivered for collection, consistent with BRIDGESTONE INDIA PVT. LTD. VS INDERPAL SINGH - 2015 0 Supreme(SC) 1087, with no indication of conflicting treatment.
Harman Electronics (P) Ltd. VS National Panasonic India Ltd. - 2008 0 Supreme(SC) 1838: Establishes jurisdiction based on where notice was received or communicated; no subsequent treatment indicated.
K. Bhaskaran VS Sankaran Vaidhyan Balan - 1999 8 Supreme 608: Explains the acts constituting the offence of dishonour of cheque; no indication of subsequent judicial treatment.
[Legal Principles / Interpretations]
The cases primarily lay down legal principles or procedural rules regarding jurisdiction, liability, and the interpretation of Section 138 of the NI Act. They do not appear to be overruled or criticized based on the provided descriptions.
All cases are described in a manner that presents them as authoritative statements of law without mention of subsequent treatment or judicial criticism. However, since the list does not include references to later cases or treatment, the treatment status remains uncertain for all cases. Without explicit references to subsequent rulings, it is difficult to definitively categorize their current legal standing beyond their original statements.
The case BRIDGESTONE INDIA PVT. LTD. VS INDERPAL SINGH - 2015 0 Supreme(SC) 1087 mentions a legislative amendment (Negotiable Instruments (Amendment) Second Ordinance, 2015), which could imply some evolution in law, but no indication it has been overruled or criticized.
Similarly, the case Dashrath Rupsingh Rathod VS State of Maharashtra - 2014 5 Supreme 641 discusses the nature of cause of action and jurisdiction, but no subsequent treatment is provided.
In summary, based solely on the provided descriptions, there is no clear evidence that any of these cases have been overruled or treated as bad law. All are presented as legal principles or clarifications without indication of subsequent judicial rejection or criticism.
(1) Dishonour of cheque – Jurisdiction to try complaint filed under Section 138 in respect of cheque delivered for collection through an account payee cheque, is vested in court within whose local ju....
Jurisdiction for complaints under Section 138 of the N.I. Act lies where the cheque is presented for collection; mere inconvenience does not justify transfer under Section 406 Cr.P.C.
The amendments to the Negotiable Instruments Act are constitutional and do not infringe on the fundamental rights of the accused despite potential inconveniences.
The jurisdiction for offenses under Section 138 of the Negotiable Instruments Act is determined by the location where the cheque was presented for collection, and a transfer of proceedings to the app....
Transfer of case – Offence of dishonour of cheque – Power of Supreme Court to transfer pending criminal proceedings under Section 406 Cr.P.C. does not stand abrogated thereby in respect of offences u....
When such amendment was brought in 2015 and inserted section 142(2) of the NI Act, the very contention of the petitioner that the Bijapur Court is not having jurisdiction to try the complaint filed f....
Jurisdiction for dishonor of cheque cases under the Negotiable Instruments Act is determined by the location of related transactional acts, not merely where notices originate.
Transfer of proceedings under Section 138 of the N.I. Act should consider the relative convenience of parties, especially in cases where there is a significant disparity in their socio-economic statu....
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