Case Note & Summary
The petitioners, accused in a complaint under Section 138 of the Negotiable Instruments Act, 1881, filed a criminal petition under Section 482 of the Code of Criminal Procedure, 1973, seeking quashing of the proceedings pending before the XXIII Additional Chief Metropolitan Magistrate, Bangalore. The complaint alleged that a cheque issued by the petitioners was dishonoured. The petitioners contended that the cheque was drawn on a bank in Gujarat, presented for collection in Gujarat, and the statutory notice was served in Gujarat. Therefore, the Magistrate at Bangalore had no territorial jurisdiction to take cognizance of the offence. The court examined the provisions of Sections 177, 178, and 179 of the Cr.P.C. and the principles laid down in various judgments. It held that the cause of action for an offence under Section 138 of the N.I. Act arises at the place where the cheque is drawn, presented, or where the notice is served. Since all these events occurred in Gujarat, the Bangalore court lacked jurisdiction. Consequently, the court quashed the proceedings and allowed the petition.
Headnote
A) Criminal Law - Territorial Jurisdiction - Cheque Dishonour - Section 138, Negotiable Instruments Act, 1881 - Section 177, 178, 179, Cr.P.C. - The court examined whether the Magistrate at Bangalore had jurisdiction to try the complaint when the cheque was drawn on a bank in Gujarat, presented in Gujarat, and the notice was served in Gujarat. Held that the cause of action arose only in Gujarat, and the Magistrate at Bangalore lacked territorial jurisdiction. (Paras 1-10) B) Criminal Procedure Code - Territorial Jurisdiction - Sections 177, 178, 179 - The court held that for an offence under Section 138 of the Negotiable Instruments Act, the place where the cheque is drawn, presented, or where the notice is served determines jurisdiction. Since all these events occurred in Gujarat, the Bangalore court had no jurisdiction. (Paras 5-10)
Issue of Consideration
Whether the Magistrate at Bangalore had territorial jurisdiction to take cognizance of the complaint under Section 138 of the Negotiable Instruments Act, 1881, when the cheque was drawn on a bank in Gujarat, presented for collection in Gujarat, and the notice of demand was served in Gujarat.
Final Decision
The court allowed the petition and quashed the proceedings in C.C. No. 27727/2013 pending before the XXIII Additional Chief Metropolitan Magistrate, Bangalore.
Law Points
- Territorial jurisdiction
- Section 138 Negotiable Instruments Act
- 1881
- Section 142 Negotiable Instruments Act
- Criminal Procedure Code
- 1973 Section 177
- 1973 Section 178
- 1973 Section 179
