1. This criminal petition is filed under Section 482 Cr.P.C. to quash the entire proceedings in C.C.No.812 of 2007 pending on the file of the II Additional Munsif Magistrate, Ongole.

2. The proceedings are sought to be quashed on the ground that the II Additional Munsif Magistrate, Ongole has no jurisdiction to entertain the complaint filed by the first respondent under Section 138 of Negotiable Instruments Act.

3. Shortly stated, the facts relevant for considering the criminal petition are as follows:

The wife of the petitioner/accused Smt.T.Shanthakumari, resident of Bangalore entered into an agreement with the first respondent/complainant at Bangalore to purchase a vacant site admeasuring 8050 square feet situate at Bangalore. Smt.T.Shanthakumari executed an agreement to sell dated 24.09.2006 in favour of the first respondent on 24.09.2006 at Bangalore. Under the said agreement to sell, the wife of the petitioner received Rs.25 lakhs and also further sum of Rs.2 lakhs subsequently towards sale consideration under two cheques. Thereafter, the first respondent having come to know about the disputes relating to the property sought to be sold, expressed his intention to repudiate the contract owing to defects in the title. It was agreed upon between the parties that the petitioner’s wife has to pay the amount back to the first respondent and in consequence thereof, the petitioner/accused issued two cheques dated 30.01.2007 for the amounts of Rs.10 lakhs and Rs.17 lakhs respectively drawn on State Bank of Mysore, Vyalikaval Branch, Bangalore. When the said cheques were presented by the first respondent for collection in Karur Vysya Bank, Bangalore, they were dishonoured with the endorsement “insufficient funds”. Thereafter, the first respondent got issued a legal notice dated 28.07.2007 to the petitioner demanding payment of cheque amount and also stating therein that on failure to pay the cheque amount, he would be constrained to file a complaint against the petitioner/accused under Section 138 of Negotiable Instruments Act. The said notice was issued from Ongole and after waiting for the requisite period, the first respondent filed a complaint under Section 138 of the Negotiable Instruments Act against the petitioner.

4. The present criminal petition is filed by the petitioner/accused to quash the entire proceedings in C.C.No.812 of 2007 which are the result of taking cognizance of the offence punishable under Section 138 of the Negotiable Instruments Act pursuant to the complaint filed by the first respondent in the Court of II Additional Munsif Magistrate, Ongole.

5. The only point arises for consideration in this criminal petition is whether the issuance of notice by the first respondent from Ongole to the petitioner/accused demanding payment of amounts under the cheques which were dishonoured and expressing his intention to file a complaint against the petitioner on his failure to pay the said amount would confer jurisdiction on the II Additional Munsif Magistrate, Ongole to entertain a complaint under Section 138 of the Negotiable Instruments Act.

6. The contention put-forth on behalf of the petitioner is that since no acknowledgement of notice sent was received by the first respondent, mere sending of notice from Ongole does not confer jurisdiction on the II Additional Munsif Magistrate, Ongole and the proceedings in C.C.No.812 of 2007 before him are liable to be quashed.

7. On the other hand, it has been argued on behalf of the first respondent/complainant that a bare reading of Section 138 of Negotiable Instruments Act would make it clear that one of the places at which cause of action arises is the place from where the payee or the holder in due course of the cheque makes a demand for payment of the cheque amount by giving notice in writing and therefore, since the first respondent in the instant case issued a notice in writing demanding payment of cheque amount within 15 days of the receipt of the notic