IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
AMAN CHAUDHARY, J.
P.S. Raj Steels Private Ltd. – Petitioner
Versus
Reliance Steel Industries & Anr. – Respondent
CRM-M NO. 46627 of 2016 (O&M)
Decided On : 13-04-2023
| Table of Content |
|---|
| 1. facts regarding complaint and dishonoured cheque. (Para 1 , 2) |
| 2. argument against returning the complaint. (Para 3) |
| 3. court's observations on jurisdiction issues. (Para 4 , 5 , 8 , 9) |
| 4. ratio decidendi on jurisdiction under amended section 142. (Para 6 , 7) |
| 5. conclusion to restore the complaint. (Para 10) |
JUDGMENT
Aman Chaudhary, J.
Present petition has been filed under Section 482 Cr.P.C. for setting aside of order dated 17.10.2014, vide which the complaint case No.2620-II dated 02.12.2013 titled as ' P.S. Raj Steels Private Ltd. v. Reliance Steel Industries and another' under section 138 of the Negotiable Instruments Act, was returned in original to be filed at the place having its proper jurisdiction.
2. Briefly put, the facts as emerge from the complaint, are that respondents had purchased SS Pipes from the complainant-petitioner on credit and in order to discharge the liability, issued a cheque dated 24.10.2013, for an amount of Rs.1,79,900/-, which was drawn on HDFC Bank, Indrapuri, Bhopal, got dishonoured with remarks 'stop payment' vide memo dated 29.10.2013. The legal notice of demand dated 06.11.2013, having evoked no response, the complaint dated 02.12.2013 was filed under section 138 of the Negotiable Instruments Act (for short 'the Act') at Hisar, where the complainant-company has its registered office. The trial Court, after recording preliminary evidence, passed the summoning order dated 02.03.2014. However, respondents-company did not appear, leading to issuance of bailable warrants to secure their presence. The complaint was however, returned in original vide order dated 17.10.2014, in view of the judgment of Hon'ble The Supreme Court in Dashrath Rupsingh Rathod v. State of Maharashtra and another , Criminal Appeal No.2287 of 2009 for its presentation before the learned Court where the drawee bank is situated.
3. Learned counsel for the petitioner would submit that though the complaint ought not to have been returned, as the cheque in question was payable at par and the drawee is situated in the city, wherein it was presented. However, now by way of an amendment carried out in the Act by incorporating Section 142A vide Notification dated 15.06.2015, the complaint could have been presented where the cheque was presented for collection that is the branch of the Bank of payee or holder in due course. To bolster his submission, he relies on Bridgestone India Pvt. Ltd. v. Inderpal Singh, (2016) 2 SCC 75, and Paramvir Singh Mor v. Professional Placements Pvt. Ltd and another, CRM- M-39975-2016, decided on 19.07.2022.
4. According to the office report, none has appeared on behalf of the respondents, in the present case. As is apparent, that despite bailable warrants having been issued against the respondents, they had not caused an appearance before the learned trial Court as well. In view of which, it would be in the interest of justice to not keep the case pending any longer, thereby, is decided as per the amendment and the law laid down.
5. Heard.
6. It is apposite to refer to the relevant portion of Negotiable Instruments (Amendment) Second Ordinance, 2015 for consideration of the case in hand, which reads thus
Bridgestone India Pvt. Ltd. v. Inderpal Singh (2016) 2 SCC 75
Objections to territorial jurisdiction must be raised timely; if belated, they can be dismissed to prevent injustice, especially after trial advancement.
Jurisdiction for offences under Section 138 of the Negotiable Instruments Act is determined by the location of the bank where the cheque is presented for collection.
Section 142 (2) of Negotiable Instruments Act read cognizance of offences.
Point of law : Section 142(2)(a) of the Act coupled with the explanation to the same makes it clear that even if the payee presents the cheque at another branch of his Bank, the home branch where he ....
The court clarified that jurisdiction for dishonour of cheque cases under Section 138 can be established where any act related to the offence occurred, emphasizing the broad scope of territorial juri....
Territorial jurisdiction under S.138 of the NI Act may be established where any act related to the offence occurred.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.