Bombay High Court Quashes FIR in Cheque Dishonour Case Due to Lack of Territorial Jurisdiction. Court holds that the offence under Section 138 of the Negotiable Instruments Act, 1881 is committed only at the place where the cheque is presented and dishonoured, not where the cheque was issued or where the complainant resides.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The judgment involves two criminal writ petitions filed by Shripad Ramchandra Deshmukh (original accused No.4) and Govind Ramchandra Deshmukh (original accused No.6) seeking quashing of FIR and criminal proceedings in RCC No. 100/2009 pending before the Judicial Magistrate First Class, Rahata, District Ahmednagar. The complaint was filed by Rambhau Bapurao Mate (respondent No.2) under Section 138 of the Negotiable Instruments Act, 1881, alleging dishonour of a cheque issued by the accused. The petitioners contended that the cheque was presented for collection at Pune and dishonoured at Pune, and therefore the courts at Ahmednagar had no territorial jurisdiction. The court examined the provisions of Section 177 of the Code of Criminal Procedure, 1973 and Section 138 of the Negotiable Instruments Act, 1881. The court held that the offence under Section 138 is committed only at the place where the cheque is presented to the bank and is dishonoured. Since the cheque was presented at Pune and dishonour occurred at Pune, the courts at Ahmednagar lacked jurisdiction. The court quashed the FIR and all proceedings in RCC No. 100/2009 pending before the JMFC, Rahata, and allowed both writ petitions.

Headnote

A) Criminal Procedure Code - Territorial Jurisdiction - Section 177 CrPC - Offence under Section 138 NI Act - The place where the cheque is presented for collection and dishonoured determines the jurisdiction of the court, not the place of issuance or the complainant's residence. Held that the courts at Ahmednagar lacked jurisdiction as the cheque was presented at Pune and dishonour occurred at Pune (Paras 5-10).

B) Negotiable Instruments Act - Dishonour of Cheque - Section 138 - Territorial Jurisdiction - The offence under Section 138 is committed only at the place where the cheque is presented to the bank and is dishonoured. The cause of action arises at that place. Held that the complaint filed at Ahmednagar was not maintainable (Paras 5-10).

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Issue of Consideration

Whether the courts at Ahmednagar had territorial jurisdiction to try the complaint under Section 138 of the Negotiable Instruments Act, 1881, when the cheque was presented for collection at Pune and the dishonour occurred at Pune.

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Final Decision

Both criminal writ petitions are allowed. The FIR and all proceedings in RCC No. 100/2009 pending before the Judicial Magistrate First Class, Rahata, District Ahmednagar are quashed and set aside.

Law Points

  • Territorial jurisdiction for Section 138 NI Act
  • Place of presentation of cheque determines jurisdiction
  • Cognizance by court without jurisdiction is void
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Case Details

2014 LawText (BOM) (04) 21

Criminal Writ Petition No.130 of 2010 and Criminal Writ Petition No.163 of 2010

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Shri P.R. Patil for Petitioner, Shri S.R. Palnitkar A.P.P. for Respondent No.1, Shri U.R. Kulkarni for Respondent No.2

Shripad s/o Ramchandra Deshmukh and Govind Ramchandra Deshmukh

State of Maharashtra and Rambhau s/o Bapurao Mate

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Nature of Litigation

Criminal writ petitions seeking quashing of FIR and proceedings under Section 138 of the Negotiable Instruments Act, 1881 on the ground of lack of territorial jurisdiction.

Remedy Sought

Petitioners (original accused Nos.4 and 6) sought quashing of RCC No. 100/2009 pending before JMFC, Rahata, District Ahmednagar.

Filing Reason

The cheque was presented for collection at Pune and dishonoured at Pune, but the complaint was filed at Ahmednagar, which lacked territorial jurisdiction.

Issues

Whether the courts at Ahmednagar had territorial jurisdiction to try the complaint under Section 138 of the Negotiable Instruments Act, 1881 when the cheque was presented and dishonoured at Pune.

Submissions/Arguments

Petitioners argued that the cheque was presented for collection at Pune and dishonour occurred at Pune, so only courts at Pune have jurisdiction. Respondent No.2 (complainant) argued that the cheque was issued at Ahmednagar and the complainant resides there, so Ahmednagar courts have jurisdiction.

Ratio Decidendi

The offence under Section 138 of the Negotiable Instruments Act, 1881 is committed only at the place where the cheque is presented to the bank and is dishonoured. The cause of action arises at that place. Therefore, the court at the place of presentation and dishonour has exclusive territorial jurisdiction.

Judgment Excerpts

The offence under Section 138 of the Negotiable Instruments Act is committed only at the place where the cheque is presented to the bank and is dishonoured. The courts at Ahmednagar had no territorial jurisdiction to try the complaint.

Procedural History

The petitioners filed criminal writ petitions before the Bombay High Court (Aurangabad Bench) challenging the proceedings in RCC No. 100/2009 pending before JMFC, Rahata, Ahmednagar.

Acts & Sections

  • Negotiable Instruments Act, 1881: 138
  • Code of Criminal Procedure, 1973: 177
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