The main legal point established in the judgment is that the presentation of the cheque to the Bank determines the territorial jurisdiction to entertain the complaint under Section 138 of the Negotiable Instruments Act.

1. This Criminal Original Petition is filed to withdraw and transfer the case in C.C.No.9534 of 2010, pending on the file of XXIII Metropolitan Magistrate's Court, Saidapet, Chennai, to Nagercoil or any other competent Court situated within the territorial jurisdiction of Nagercoil, Kanyakumari District.

2. The skeleton of the case of the petitioner is that the petitioner borrowed a sum of Rs.95,000/- by way of personal loan from the complainant on 28.06.2008 and he agreed to repay the same in 36 equal monthly instalments of Rs.4,571/- p.m. So the petitioner issued 36 signed blank cheques. He repaid the same properly upto 31.12.2009 without any default, i.e. 18 instalments. At the time of disbursing of the loan, the respondent/complainant received 36 numbers of signed blank cheques. Due to the problem arised in his business, the petitioner was unable to pay the balance amount. When the cheques were presented, they were returned with endorsements as 'account closed' and hence, the respondent/complainant issued statutory notice dated 03.07.2010. Since the petitioner/accused was unable to pay the cheque amounts, the respondent/complainant preferred a complaint under Section 138 of the Negotiable Instruments Act before XXIII Metropolitan Magistrate, Saidapet, Chennai, which was taken on file in C.C.No.9534/2010. It is further submitted that XXIII Metropolitan Magistrate's Court has no jurisdiction to entertain the same, since the entire cause of action arose only at Nagercoil and no cause of action arose at Chennai conferring territorial jurisdiction to file a complaint under Section 138 of the Negotiable Instruments Act. The loan transaction was at branch of the respondent's firm situated at Nagercoil. The cheques were presented at HDFC Bank, Nagercoil and notice alone has been issued from Chennai and as per the dictum of the Apex Court, the trial Court has no jurisdiction to entertain the same and hence, he prayed for withdrawal and transfer of the case pending before XXIII Metropolitan Magistrate, to the competent territorial jurisdictional Court at Nagercoil, Kanyakumari District.

3. The respondent/complainant in the trial Court, filed counter affidavit stating that the trial has already commenced and the same is pending for questioning the accused under Section 313 Cr.P.C. Since the petitioner/accused defaulted in payment of the amount, the cheques were presented before HDFC Bank, Chennai and the cheques were returned and hence, statutory notice has been issued and since the accused has not repaid the amount, the complaint has been preferred. So, XXIII Metropolitan Magistrate's Court has territorial jurisdiction to entertain the complaint and hence, he prayed for dismissal of the case.

4. Considering the rival submissions made by both sides, it is admitted that there was loan transaction and the petitioner borrowed Rs.95,000/- for his business purpose and issued 36 cheques for repayment of loan in 36 monthly instalments of Rs.4,571/-. The issuance of cheques bearing Nos.45848, 45849 and 45850, dated 4.3.2010, 4.4.2010 and 4.5.2010 were presented, which were returned as "Account Closed". So, the notice has been issued from Chennai and reply has been received and then the complaint has been preferred.

5. The learned counsel for the petitioner has raised two points. One is the cheques were issued only at HDFC Bank, Nagercoil and notice alone has been issued from Chennai. Mere issuance of notice is not conferred any territorial jurisdiction.

6. The learned counsel for the respondent submitted that the cheques were presented before the HDFC Bank, Chennai. So as per the dictum of apex Court reported in 1999 (7) SCC 510 (K.Bhaskaran v. Sankaran Vaidhyan Balan), there are 5 cause of actions. The third cause of action is presentation of the cheque to the Bank is having territorial jurisdiction. Here, since the cheques were presented at HDFC Bank, Chennai and notice also issued at Chennai, the learned XXIII Metropolitan Magis