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2016 Supreme(J&K) 661

IN THE HIGH COURT OF JAMMU AND KASHMIR
Tashi Rabstan, J.
Continental Construction Co. - Appellant
Vs.
Charanjit Kochhar - Respondent
Criminal Rev. No. 66 of 2015 and MP No. 1 of 2015
Decided On : 12-08-2016

Advocates Appeared:
For the Appellants :Mr. Zulkar Nain Sheikh, Advocate
For the Respondent:Mr. R.K. Gupta, Senior Advocate with Mr. Prem Sadotra, Advocate

The main legal point established in the judgment is the retrospective effect of the provisions of the Negotiable Instruments Act, particularly Section 142-A, on the territorial jurisdiction for initiating proceedings under Section 138 of the Act.

Headnote:

Negotiable Instruments Act - Territorial Jurisdiction - Section 138, 141, 142 - Summary of Acts and Sections: The court discussed the amendments made in the Negotiable Instruments Act by the Negotiable Instruments (Amendment) Ordinance 2015 and the Negotiable Instruments (Amendment) Second Ordinance 2015, particularly focusing on Section 142-A. The court highlighted the retrospective effect of the provisions and their influence on the territorial jurisdiction for initiation of proceedings under Section 138 of the Negotiable Instruments Act.

Fact of the Case:

The case involved a complaint under Sections 138, 141, and 142 of the Negotiable Instruments Act, 1881, regarding dishonoured cheques. The court addressed the jurisdictional issue and the effect of the amendments made in the Negotiable Instruments Act by the Negotiable Instruments (Amendment) Ordinance 2015 and the Negotiable Instruments (Amendment) Second Ordinance 2015.

Finding of the Court:

The court upheld the order transferring the complaint to the Court at New Delhi, citing the retrospective effect of the provisions of the Negotiable Instruments Act and the influence of Section 142-A on the territorial jurisdiction for initiating proceedings under Section 138 of the Act.

Issues: The main issue was the jurisdictional challenge based on the amendments made in the Negotiable Instruments Act by the Negotiable Instruments (Amendment) Ordinance 2015 and the Negotiable Instruments (Amendment) Second Ordinance 2015.

Ratio Decidendi: The court's decision was influenced by the retrospective effect of the provisions of the Negotiable Instruments Act, particularly Section 142-A, which vested jurisdiction for initiation of proceedings under Section 138 of the Act in the territorial jurisdiction of the Court where the cheque is presented for encashment by the Payee to his Banker.

Final Decision: The Revision Petition was dismissed, and the order transferring the complaint to the Court at New Delhi was upheld.

JUDGMENT :

Tashi Rabstan, J.

Criminal Revision Petition on hand is directed against order dated 30.11.2015 passed by learned Special Judge, Railway Magistrate (Sub-Judge), Jammu, in case titled M/s. Charanjit Kochhar and Anr. v. The Continental Construction Company and Ors., in File No. 293/Compt., whereby the case has been transferred to the Court of Learned Additional Chief Metropolitan Magistrate, Saket Courts, New Delhi.

2. The brief facts giving rise to the present revision petition are that the respondents had filed a complaint purportedly under Sections 138,141, and 142 of the Negotiable Instruments Act, 1881, against the petitioners before the Court of learned Additional Chief Metropolitan Magistrate, Saket Courts, New Delhi, alleging therein that some cheques issued by Petitioner No. 1 has been dishonoured. It is also averred that respondents filed two different complaints against petitioners, one titled as M/s. Charanjit Kochhar and Anr. v. The Continental Construction Company and the other titled as Binkesh Kochhar v. The Continental Construction Company on similar allegations, and without pointing out as to/why two different sets of cheques were issued by Petitioner No. 1 and to what was the legally enforceable debt payable by the petitioners. However, in the complaints, the respondents have mentioned that they had some kind of business relations with M/s. Trikuta Builders through one Ajay Kapoor S/o Sh. Gian Chand Kapoor R/o H. No. 210, Sector-C, Sainik Colony, Jammu. The respondents have no business with the petitioners and there was nothing against the petitioners.

3. During the pendency of the complaint before the learned Additional Chief Metropolitan Magistrate, Saket Courts, New Delhi, the Hon'ble Apex Court in case titled Dashrath Rupsingh Rathod v. State of Maharashtra 2014 (4) JKJ 14 [SC], (Cr. Appeal No. 2287 of 2009) pronounced the judgment regarding the territorial jurisdiction of the cases pertaining to dishonour of cheques, therefore, the learned Additional Chief Metropolitan Magistrate, Saket Courts, Nev.-Delhi, in light of the said judgment, returned the complaint to the Complainant-respondent herein for presenting the same before the Court having appropriate jurisdiction. The Complainant-respondent herein, accordingly, presented a fresh complaint before the learned Chief Judicial Magistrate, Jammu, which was transferred to the Court of learned Special Railway Magistrate (Sub-Judge), Jammu. The learned Special Railway Magistrate (Sub-Judge), Jammu took the cognizance of the matter. Consequently, the proceedings were initiated.

4. Amendments have been incorporated in the Negotiable Instruments Act by virtue of which Negotiable Instruments (Amendment) Ordinance 2015 (hereinafter referred to as 'First Amendment') read with Negotiable Instruments (Amendment) Second Ordinance-2015 (hereinafter referred to as 'Second Ordinance'). In light of incorporation of Sub-section (2) of Section 142 in the Principal Act (Negotiable Instruments Act, 1881), the learned Special Railway Magistrate (Sub-Judge), Jammu, has passed the order impugned dated 30.11.2015, observing that jurisdiction to hear the instant case lies at New Delhi, as the cheque in the instant case, has been presented for encashment by the Payee to his Banker, the Jammu and Kashmir Bank Limited, C-10, Greater Kailash-1, New Delhi. Aggrieved by the order impugned, the petitioner prefers the present Criminal Revision.

5. Heard learned counsel for the parties and perused the record.

6. The ground of challenge thrown to order impugned in the present revision petition is that there is no such provision incorporated in Second Ordinance of Negotiable Instruments (Amendment), Second Ordinance, 2015, therefore, the order impugned, transferring the complaint/application, is without jurisdiction.

7. Learned counsel for the petitioner avers that the Negotiable Instruments (Amendment) Ordinance, 2015, 'First Ordinance', was promulgated by Hon'ble the President of India o














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