Case Note & Summary
The appeal arose from a dispute regarding the territorial jurisdiction to try an offence under Section 138 of the Negotiable Instruments Act, 1881, concerning a dishonoured cheque. The appellant, a director of a company, issued a post-dated cheque to the respondent, which was later returned unpaid due to a stop payment request. The respondent filed a complaint in Bhiwani after sending a legal notice, which the appellant contested on jurisdictional grounds. The High Court dismissed the appellant's petition, leading to this appeal. The court analyzed the principles of jurisdiction as established in K. Bhaskaran v. Sankaran Vaidhyan Balan, emphasizing that the offence under Section 138 is completed at the place where the drawer resides or where the payee resides. The court noted that the respondent had presented the cheque in Bhiwani, where it was dishonoured, thus affirming the jurisdiction of the Bhiwani court. The court dismissed the appeal, agreeing with the lower courts' application of the law and confirming that the High Court rightly refused to exercise its extraordinary jurisdiction under Section 482 of the Code of Criminal Procedure, 1973. The interim order was vacated as a result of the dismissal.
Headnote
A) Criminal Law - Territorial Jurisdiction - Jurisdiction of Courts under N.I. Act - Negotiable Instruments Act, 1881, Section 138 - The court at Bhiwani had jurisdiction to try the complaint as the respondent was a resident of Bhiwani and the cheque was presented there. The court affirmed that jurisdiction can be established at the place of residence of the payee or drawer, as per the principles laid down in K. Bhaskaran v. Sankaran Vaidhyan Balan (Paras 8-14).
Issue of Consideration
Whether the Court where a cheque is deposited for collection has territorial jurisdiction to try the accused for an offence under Section 138 of the Negotiable Instruments Act, 1881.
Final Decision
The Supreme Court dismissed the appeal, affirming the jurisdiction of the Bhiwani court to try the complaint under Section 138 of the N.I. Act, based on the principles established in K. Bhaskaran v. Sankaran Vaidhyan Balan.
Law Points
- territorial jurisdiction
- cheque dishonour
- Negotiable Instruments Act
- Code of Criminal Procedure
- jurisdictional principles
