Case Note & Summary
The judgment concerns two criminal applications filed under Section 482 of the Code of Criminal Procedure, 1973 (CrPC) seeking quashing of FIR No. 514/2023 registered at Police Station Sindhi (Rly.), District Wardha, Maharashtra, for an offence under Section 138 of the Negotiable Instruments Act, 1881 (NI Act). The applicants, Krishna Mandadi and Venkata Siva Kishore Patnala, are residents of Hyderabad and Guntur respectively. The FIR was lodged by the respondent, Chandrabhan Meghare, a police constable, alleging that a cheque issued by the applicants was dishonoured. The applicants contended that the cheque was drawn on a bank in Hyderabad, presented at Hyderabad, and dishonoured at Hyderabad, and thus no part of the cause of action arose within the territorial jurisdiction of the Sindhi (Rly.) Police Station in Wardha, Maharashtra. The court heard arguments from counsel for the applicants and the Additional Public Prosecutor for the State. The court noted that the facts were identical in both applications and clubbed them for a common order. The court held that the offence under Section 138 of the NI Act is committed at the place where the cheque is presented and dishonoured, and not at the place of the drawee's residence or the bank branch where the account is maintained, if the cheque is presented elsewhere. Since the cheque was presented and dishonoured in Hyderabad, the FIR registered in Wardha was without territorial jurisdiction. Consequently, the court quashed the FIR and all proceedings arising therefrom.
Headnote
A) Criminal Procedure Code - Quashing of FIR - Section 482 CrPC - Territorial Jurisdiction - The court examined whether the FIR registered at Sindhi (Rly.) Police Station, Wardha, for an offence under Section 138 of the Negotiable Instruments Act, 1881, was maintainable when the cheque was drawn on a bank in Hyderabad, presented at Hyderabad, and dishonoured at Hyderabad. The court held that no part of the cause of action arose within the jurisdiction of the said police station, and thus the FIR was liable to be quashed. (Paras 1-5) B) Negotiable Instruments Act - Territorial Jurisdiction - Section 138 - The court considered the principles of territorial jurisdiction for cheque dishonour cases. It held that the offence under Section 138 is committed at the place where the cheque is presented and dishonoured, and not at the place of the drawee's residence or the bank branch where the account is maintained, if the cheque is presented elsewhere. (Paras 1-5)
Issue of Consideration
Whether the FIR registered at Police Station Sindhi (Rly.) in Wardha, Maharashtra, for an offence under Section 138 of the Negotiable Instruments Act, 1881, is maintainable when the cheque was drawn on a bank in Hyderabad, presented at Hyderabad, and dishonoured at Hyderabad, and no part of the transaction occurred within the territorial jurisdiction of the said police station.
Final Decision
The court allowed both applications and quashed FIR No. 514/2023 registered at Police Station Sindhi (Rly.), District Wardha, and all proceedings arising therefrom.
Law Points
- Territorial jurisdiction for Section 138 NI Act
- Quashing of FIR under Section 482 CrPC
- Lack of territorial jurisdiction
- Cognizance of offence
