Territorial jurisdiction in cheque bounce case
2 months ago
When drawees home branch is in ABC city but he presented the case in XYZ city for clearing. Which city court will hold territorial jurisdiction in that case?
A.Dear Client,
The latest ruling on territorial jurisdiction for cheque bounce matters under Section 138 of the Negotiable Instruments Act (NI Act) comes from the Supreme Court case of M/s T.P. Murugan (Dead) through Lrs. Vs. Bojan (2018) 8 SCC 469. The apex court, in its landmark judgment, emphasized that the place where the cheque is dishonored is the determining factor for establishing territorial jurisdiction. This ruling aligns with the legislative intent of Section 138 of the NI Act, which specifically mentions that legal proceedings can be initiated in the court within whose local jurisdiction the offense was committed i.e, where the cheque is presented for collection. Therefore, the court situated within the jurisdiction of the drawee bank will have the territorial jurisdiction to entertain the complaint under Sec.138 of the N I Act. A cheque bounce case must be filed within 30 days of the receipt of the legal notice by the drawer of the cheque. However, the Court can extend the time for filing the complaint by condoning the delay in filing the complaint on being satisfied with the reasons assigned in the petition.
The latest ruling on territorial jurisdiction for cheque bounce matters under Section 138 of the Negotiable Instruments Act (NI Act) comes from the Supreme Court case of M/s T.P. Murugan (Dead) through Lrs. Vs. Bojan (2018) 8 SCC 469. The apex court, in its landmark judgment, emphasized that the place where the cheque is dishonored is the determining factor for establishing territorial jurisdiction. This ruling aligns with the legislative intent of Section 138 of the NI Act, which specifically mentions that legal proceedings can be initiated in the court within whose local jurisdiction the offense was committed i.e, where the cheque is presented for collection. Therefore, the court situated within the jurisdiction of the drawee bank will have the territorial jurisdiction to entertain the complaint under Sec.138 of the N I Act. A cheque bounce case must be filed within 30 days of the receipt of the legal notice by the drawer of the cheque. However, the Court can extend the time for filing the complaint by condoning the delay in filing the complaint on being satisfied with the reasons assigned in the petition.
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