SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2016 Supreme(Guj) 2062

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
S.G. SHAH, J.
GAUTAM INDUSTRIAL CORPORATION PVT LTD THRO' NARESH ANNRAJ BHANSALI (DECEASED) - Applicants
Versus
STATE OF GUJARAT & ORS. - Respondents
CRIMINAL REVISION APPLICATION (AGAINST CONVICTION - EGOTIABLE INSTRUMENT ACT) NO. 181 of 2015
Decided On : 05-08-2016

Advocates Appeared:
For the Applicants : MR HARDIK A DAVE
For the Respondents: MR MANAN MEHTA

IMPORTANT POINT: The conjoint reading of the newly inserted provision of the N.I Act and the judgment of the Supreme Court in Bridgestone India Private Limited are applicable with retrospective effect of 15.6.2015 and the decision of the Supreme Court in the case of Dashrath Rupsingh Rathod is statutorily superseded.

Headnote:Negotiable Instruments Act, 1881---Section 138---The territorial jurisdiction to take cognizance of the proceedings initiated by the appellant under Section 138 of the Negotiable Instruments Act, 1881--- Section 142(2)(a), amended through the Negotiable Instruments (Amendment) Second Ordinance, 2015, vests jurisdiction for initiating proceedings for the offence under Section 138 of the Negotiable Instruments Act, inter alia in the territorial jurisdiction of the Court, where the cheque is delivered for collection (through an account of the branch of the bank where the payee or holder in due course maintains an account)---The conjoint reading of the newly inserted provision of the N.I Act and the judgment of the Supreme Court in Bridgestone India Private Limited it is vividly clear that the newly inserted provisions of the N.I Act are applicable with retrospective effect of 15.6.2015 and the decision of the Supreme Court in the case of Dashrath Rupsingh Rathod is statutorily superseded.

       Result- Application allowed.

JUDGMENT :

S.G. SHAH, J.

1. This Revision Application is filed under section 397 read with section 401 of the Code of Criminal Procedure (for short the Code) to challenge the order dated 27th March 2015 of learned 3rd Additional Chief Judicial Magistrate, Surat, in Criminal Case No. 14408 of 2014 whereby relying upon the decision of the Supreme Court in the case of Dashrath Rupsingh Rathod Vs. State of Maharashtra 2014(9) SCC 129, learned Additional Chief Judicial Magistrate returned the complaint and original documents to the present applicant (original complainant) for being presented before the competent court.

2. The brief facts giving rise to the present application are that the private respondents gave 7 cheques totaling to Rs.14,45,879/- towards discharging the dues to the applicant Corporation. The details of the cheques which were drawn on Axis Bank, Bangalore Branch are as under:-.

Sr. No.

Cheque No.

Cheque amount

1

50113

Rs.2,00,000/-

2

50114

Rs.2,00,000/-

3

50115

Rs.2,00,000/-

4

50116

Rs.2,00,000/-

5

50117

Rs.2,00,000/-

6

50118

Rs.2,00,000/-

7

50119

Rs.2,00,000/-

3. The applicant presented those cheques for clearance to its bank namely Bank of Baroda, Ambaji Road, Branch, Surat. These cheques were dishonoured on the ground that the payment was stopped by the private respondents. The applicant issued a legal notice to the private respondents demanding the amount of the dishonoured cheques. The notice was served upon the privates respondents on 28th December 2013 and 30th December 2013. The private respondents were also informed in the said notice by the applicants that they would be compelled to initiate the proceedings under section 138 of the N.I Act, if the payment was not made within 15 days from the receipt of the notice. Despite receipt of the notice, the private respondent failed to discharge their obligation of the amount of the dishonoured cheques nor did they respond to the legal notice. The applicant was therefore, constrained to file Criminal case no. 14408 of 2014 for the offences punishable under section 137 of the N.I Act against the private respondent in the Court of learned 3rd Additional Chief Judicial Magistrate, Surat, who by order dated 27th March 2015 relying upon the decision of the Supreme Court in the case of Dashrath Rupsingh Rathod (supra), returned the complaint along with its original documents to the applicant for being presented to the competent criminal court having jurisdiction to try the case in terms of the decision of the Supreme Court.

4. The applicant being aggrieved and dissatisfied by the impugned order passed by the learned trial judge filed this Revision Application.

5. I have heard Mr. Hardik Dave learned advocate for the applicant and Mr. Manan Mehta, learned Additional Public Prosecutor for the State. There is no appearance on behalf of respondent no. 2 to 7 despite service of notice of rule.

6. With a view to overcome the legal proposition of law declared by the High Court in the case of Dashrath Rupsingh Rathod (supra), the N.I Act (amendment) second ordinance, 2015 (herein after referred to as the Ordinance) came to be promulgated by the President of India. Perusal of section 1 (2) makes it manifestly clear that the ordinance is deemed to have come into force w.e.f 15.6.2015. Sections 3 and 4 of the of the N.I (Amendment) Second Ordinance 2015 reads as under :

3. In the principal Act, section 142 shall be numbered as sub-section (1) thereof and after sub-section (1) as so numbered, the following sub-section shall be inserted, namely:-

(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 c
















Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top