Case Note & Summary
The petitioners, original accused in a complaint under Section 138 of the Negotiable Instruments Act, 1881, challenged the territorial jurisdiction of the Judicial Magistrate First Class, Bhokardan. The complaint was filed by the respondent-complainant alleging dishonour of a cheque. The cheque was drawn on the Maharashtra Gramin Bank, Bhokardan, but was presented for collection by the complainant through his bank at Chalisgaon. The petitioners argued that since the cheque was presented at Chalisgaon, the court at Bhokardan lacked jurisdiction. The Magistrate rejected their application (Exhibit 48) holding that the court had jurisdiction, and the Sessions Court dismissed the revision. The High Court examined the provisions of Section 138 NI Act and Section 178(c) of the Code of Criminal Procedure, 1973. It held that the offence under Section 138 is deemed to be committed at the place where the cheque is presented to the drawee bank, as the dishonour occurs when the drawee bank returns the cheque unpaid. The court clarified that the presentation of the cheque to the drawee bank is a distinct act from its deposit for collection. Since the drawee bank was situated within the jurisdiction of the JMFC Bhokardan, that court had territorial jurisdiction. The High Court dismissed the petition, upholding the orders of the lower courts.
Headnote
A) Criminal Procedure Code - Territorial Jurisdiction - Section 178(c) CrPC - Offence under Section 138 NI Act - The place where the cheque is presented to the drawee bank (the bank on which it is drawn) is a place where an offence under Section 138 NI Act can be tried, as the deemed offence occurs at the drawee bank's location. (Paras 5-7) B) Negotiable Instruments Act - Territorial Jurisdiction - Section 138 NI Act - Presentation of Cheque - The presentation of the cheque to the drawee bank is a crucial act constituting the offence; the court within whose jurisdiction the drawee bank is situated has jurisdiction to try the case, even if the cheque was deposited for collection at a different place. (Paras 5-7)
Issue of Consideration
Whether the Judicial Magistrate First Class, Bhokardan had territorial jurisdiction to try the complaint under Section 138 of the Negotiable Instruments Act, 1881, when the cheque was drawn on a bank at Bhokardan but presented for collection at a bank in Chalisgaon.
Final Decision
The High Court dismissed the petition, holding that the Judicial Magistrate First Class, Bhokardan had territorial jurisdiction to try the complaint under Section 138 of the Negotiable Instruments Act, 1881. The orders of the Magistrate and the Revisional Court were upheld.
Law Points
- Territorial jurisdiction for offence under Section 138 NI Act is determined by the place where the cheque is presented to the drawee bank
- not the payee's bank
- Section 178(c) CrPC applies
- Section 138 NI Act creates a deemed offence at the place of the drawee bank.
