Case Note & Summary
The petitioner, Mrs. Preetha S. Babu, a resident of Ernakulam, Kerala, filed a Criminal Writ Petition under Articles 226 and 227 of the Constitution before the Bombay High Court seeking quashing of Criminal Case No. 848/SS/2009 pending before the Metropolitan Magistrate, 33rd Court, Ballard Pier, Mumbai. The complaint was filed by Respondent No. 1, Voltas Limited, a company incorporated under the Companies Act, 1956, engaged in air-conditioner and engineering services, alleging an offence under Section 138 of the Negotiable Instruments Act, 1881. The petitioner contended that the cheque in question was issued and presented in Kerala, and the drawee bank was also in Kerala, thus the Mumbai court lacked territorial jurisdiction. The respondent argued that since the company's registered office was in Mumbai, the Mumbai court had jurisdiction. The court analyzed the provisions of Section 138 of the NI Act and the relevant case law, holding that the cause of action for dishonour of a cheque arises only at the place where the cheque is presented and dishonoured, not at the place of issuance or the complainant's registered office. The court quashed the complaint for lack of territorial jurisdiction, allowing the petition.
Headnote
A) Criminal Procedure - Territorial Jurisdiction - Section 138 Negotiable Instruments Act, 1881 - Quashing of Complaint - The petitioner challenged the jurisdiction of the Mumbai court to try a complaint under Section 138 of the NI Act, as the cheque was issued and presented in Kerala and dishonoured by the drawee bank in Kerala. The court held that the cause of action arises only at the place where the cheque is presented and dishonoured, not at the place of issuance or where the complainant company has its registered office. The complaint was quashed for lack of territorial jurisdiction. (Paras 1-10)
Issue of Consideration
Whether the Metropolitan Magistrate at Mumbai had territorial jurisdiction to entertain a complaint under Section 138 of the Negotiable Instruments Act, 1881, when the cheque was issued and presented in Kerala and the drawee bank was in Kerala.
Final Decision
The court allowed the petition and quashed C.C. No.848/SS/2009 pending before the Metropolitan Magistrate, 33rd Court, Ballard Pier, Mumbai, for lack of territorial jurisdiction.
Law Points
- Territorial jurisdiction under Section 138 of Negotiable Instruments Act
- 1881
- Cause of action for cheque dishonour
- Quashing of criminal proceedings under Articles 226 and 227 of Constitution
Case Details
2010 LawText (BOM) (03) 74
Criminal Writ Petition No.3158 of 2009
Smt. Ranjana Desai, Mrs. Mridula Bhatkar
Mr. Samir Vaidya for the petitioner, Mr. S.A. Velkar i/b M/s. Mulla & Mulla & C.B.C. for respondent 1, Mr. Rajesh More, A.P.P. for the State
Voltas Limited, State of Maharashtra
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Nature of Litigation
Criminal writ petition under Articles 226 and 227 of the Constitution seeking quashing of a criminal complaint under Section 138 of the Negotiable Instruments Act, 1881.
Remedy Sought
The petitioner sought quashing and setting aside of C.C. No.848/SS/2009 pending before the Metropolitan Magistrate, 33rd Court, Ballard Pier, Mumbai.
Filing Reason
The petitioner challenged the territorial jurisdiction of the Mumbai court to try the complaint under Section 138 of the NI Act, as the cheque was issued and presented in Kerala and the drawee bank was in Kerala.
Issues
Whether the Metropolitan Magistrate at Mumbai had territorial jurisdiction to entertain a complaint under Section 138 of the Negotiable Instruments Act, 1881, when the cheque was issued and presented in Kerala and the drawee bank was in Kerala.
Submissions/Arguments
The petitioner argued that the cheque was issued and presented in Kerala, and the drawee bank was in Kerala, so the Mumbai court lacked territorial jurisdiction.
The respondent argued that since the company's registered office was in Mumbai, the Mumbai court had jurisdiction.
Ratio Decidendi
The cause of action for an offence under Section 138 of the Negotiable Instruments Act, 1881 arises only at the place where the cheque is presented and dishonoured, not at the place of issuance or the complainant's registered office. Therefore, the court at Mumbai had no territorial jurisdiction to try the complaint.
Judgment Excerpts
In this petition filed under Articles 226 and 227 of the Constitution, the petitioner has prayed for quashing and setting aside of C.C. No.848/SS/2009 pending on the file of Metropolitan Magistrate, 33rd Court, Ballard Pier, Mumbai.
Procedural History
The petitioner filed a Criminal Writ Petition under Articles 226 and 227 of the Constitution before the Bombay High Court challenging the territorial jurisdiction of the Metropolitan Magistrate, Mumbai, in a complaint under Section 138 of the Negotiable Instruments Act, 1881. The court reserved judgment on 3rd February 2010 and pronounced it on 3rd March 2010.
Acts & Sections
- Negotiable Instruments Act, 1881: 138
- Constitution of India: 226, 227
- Companies Act, 1956:
