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IN THE HIGH COURT FOR THE STATE OF TELANGANA

AT HYDERABAD

THE HON'BLE SMT. JUSTICE TIRUMALA DEVI EADA

CRIMINAL PETITION No.7255 OF 2025

DATE: 30-12-2025

Between:

M/s. Vanita Traders and another

… Petitioners

And

The State of Telangana,

rep. by its Public Prosecutor,

High Court, Hyderabad and another

... Respondents

ORDER:

This Criminal Petition is filed by the petitioners-accused

Nos.1 and 2 seeking to quash the proceedings against them in

C.C.No.151 of 2023 on the file of learned XI Metropolitan

Magistrate at Nampally, Hyderabad, registered for the offence

under Section 138 of the Negotiable Instruments Act, 1881 (for

short, ‘the N.I. Act’).

2. Heard Ms. R. Annapurna, learned counsel for the

petitioners, Sri Jithender Rao Veeramalla, learned Additional

2 ETD,J

Crl.P.No.7255 of 2025

Public Prosecutor for respondent No.1-State and Sri Satish

Kumar Kuna, learned counsel for respondent No.2.

3. Learned counsel for the petitioners submitted that the

present C.C.No.151 of 2023 on the file of learned XI Metropolitan

Magistrate at Nampally, Hyderabad, registered for the offence

under Section 138 of the N.I. Act against the petitioners herein is

not maintainable, as the said Court lacks jurisdiction. She further

submitted that the cheque in question was presented at YES

Bank Limited, Chembur Branch, Mumbai, and the same was

returned by the said Bank, but the complaint is lodged at

Nampally Court. She further submitted that when the cheque is

returned at Mumbai, where the de facto complainant has an

account, the proceedings have to be initiated at Mumbai, but not

at Nampally. She, therefore, prayed to quash the proceedings in

the present C.C. against the petitioners herein.

4. Learned counsel for respondent No.2 submitted that

though the cheque is presented at Mumbai, the account of the

payee is at Somajiguda Branch and therefore, respondent No.2-

complainant filed the complaint at concerned Court at Nampally,

and the same is very much maintainable. He further submitted

that the jurisdiction lies at the Court within whose limits the

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Crl.P.No.7255 of 2025

payee’s bank account is maintained. The learned counsel, in

support of his submissions, has relied upon the judgment of the

Honourable Supreme Court in Prakash Chimanlal Sheth v.

Jagruti Keyur Rajpopat, 2025 LawSuit (SC) 1023. He, therefore, prayed to dismiss the

Criminal Petition.

5. Perused the record.

6. The point involved in the present case is with regard to the

jurisdiction of a Court to entertain a complaint under Section 138

of the N.I. Act. Section 142(2) of the N.I. Act is relevant in this

regard and the same is extracted hereunder:

“142. Cognizance of offences. –

(1) xxx

(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 case may be, maintains

the account, is situated; or

(b) if the cheque is presented for payment by the

payee or holder in due course, otherwise through an

account, the branch of the drawee bank where the

drawer maintains the account, is situated.”

4 ETD,J

Crl.P.No.7255 of 2025

Thus, the Court which has jurisdiction over the area in which the

payee account is maintained, is vested with the power of trying

the cases under Section 138 of the N.I. Act. In the present case,

the payee’s account is at YES Bank, Somajiguda Branch. Thus,

the complaint was filed at Nampally Court and the same was

registered. The petitioners contend that the Court at Nampally

does not have jurisdiction as the Cheque was returned at

Mumbai.

7. In Prakash Chimanlal Sheth’s case (supra), the cheques

were presented at Mumbai and the same were dishonoured due

to insufficient funds, thereby the complainant filed four cases

under Section 138 of the N.I. Act before the learned Judicial

Magistrate of First Class, Mangalore. But, the learned Magistrate

has returned them stating that the drawee bank is at Mumbai and

therefore, the