Case Note & Summary
The dispute arose from a business transaction between the appellants and the respondent, where a cheque issued by the appellants was dishonoured. The appellants, residents of Chandigarh, issued the cheque at Chandigarh, and the complainant, while having its head office in Delhi, also operated a branch in Chandigarh. The cheque was presented and dishonoured in Chandigarh, and a notice demanding payment was sent from Delhi. The appellants contested the jurisdiction of the Delhi court, arguing that the entire cause of action arose in Chandigarh. The Additional Sessions Judge in Delhi ruled that the court had jurisdiction based on the notice being sent from Delhi. The appellants appealed to the Supreme Court, which examined the jurisdictional issues under the Negotiable Instruments Act and the Code of Criminal Procedure. The court emphasized that the offence under Section 138 could only be tried where the offence was committed, which was in Chandigarh. The court noted that while sending a notice is necessary, the actual receipt of the notice is crucial for establishing jurisdiction. The Supreme Court ultimately held that the Delhi High Court had no jurisdiction and transferred the case to Chandigarh, directing it to be disposed of within six months. The appeal was allowed without costs.
Headnote
A) Criminal Procedure - Jurisdiction - Territorial Jurisdiction in Criminal Cases - Code of Criminal Procedure, 1973, Section 177 - The court held that jurisdiction to try a criminal case is determined by where the offence was committed, and since the cheque was issued and dishonoured in Chandigarh, the Delhi court lacked jurisdiction. The appeal was allowed, and the case was directed to be transferred to Chandigarh for trial (Paras 28-29).
Issue of Consideration
Whether the court in Delhi had jurisdiction to try the offence under Section 138 of the Negotiable Instruments Act, 1881.
Final Decision
The Supreme Court allowed the appeal, ruling that the Delhi High Court had no jurisdiction to try the case and directed the transfer of the complaint to Chandigarh for trial, to be disposed of within six months.
Law Points
- Territorial jurisdiction
- Negotiable Instruments Act
- 1881
- Section 138
- Cause of action
- Service of notice
