Latest Ruling Territorial Jurisdiction for Cheque Bounce Matters ( NI Section 138)

April 07, 2024 हिंदी में पढ़ें

Why do you need a lawyer for a cheque bounce case?

In the case of a Dishonour of Cheque, one can send a legal notice and follow the legal procedure in order to get the cheque honoured in the Court of appropriate jurisdiction. For this, you will need the help of a cheque bounce lawyer. The Gujarat High Court in its recent judgment of Brijendra Enterprise v. State of Gujarat and another has explained the law relating to territorial jurisdiction for filing a complaint about the dishonor of cheques. As per the Negotiable Instruments (Amendment) Act, 2015 a complaint can be filed under Section 138 for the dishonor of cheque at a court within whose local jurisdiction:-

The branch of the bank is located
The payee or the holder maintains an account

In view of this recent amendment, a complaint for dishonor of cheque under Section 138 of Negotiable Instruments Act can be filed in the court situated at a place where the bank of the payee is situated. For better understanding, consider the following examples-

Mr. A holds an account in Navrangpura Branch, Ahmedabad of “ XYZ” Bank, issues a cheque payable in favor of B. B, who holds an account with the M.S University Road Branch, Vadodara of the “ PQR” bank, deposits the said cheque at Surat Branch of & lsquo PQR bank' and the cheque is dishonored. The complaint will have to be filed before the court having jurisdiction where the M.S University road branch is situated.
A holds an account with the Navrangpura branch, Ahmedabad, of & quot XYZ& quot Bank issues a cheque payable in favor of B. B presents the cheque at the Vadodara Branch of the & lsquo XYZ' Bank ( but B does not hold an account in any branch of the & quot XYZ& quot bank) and the cheque is dishonored. The complaint will have to be filed before the court having jurisdiction over the Navrangpura branch, Ahmedabad, of & quot XYZ& quot Bank.

To summarise, when the cheque is delivered for collection through an account, the complaint is to be filed before the court where the branch of the bank is located, where the payee or the holder in due course maintains his account and, when the cheque is presented for payment over the bank, the complaint is to be filed before the court where the drawer maintains his account.

Why do you need a lawyer for a cheque bounce case?

Cheque bounce can attract possible criminal charges. By hiring a cheque bounce lawyer to file or to defend a cheque bounce case is one way you can ensure that you are on the right path in your cheque bounce journey. While the lawyer will need to gather information from you regarding the case, he or she will also take care of all the paperwork, allowing you more time to take care of your business and other priorities. An experienced attorney can give you expert advice on how to handle your cheque bounce case owing to his years of experience in handling such cases. A cheque bounce lawyer is an expert on the laws and can help you avoid significant mistakes that may cause financial or legal harm, which may require future legal proceedings to correct. A lawyer would also ensure you are directed on the right path regarding which kind of case to opt for. Thus, by hiring an attorney a person can make sure that he and his interests are protected under the law. You can also use LawRato's Free Legal Advice service to get free advice on your legal issue from expert cheque bounce lawyers.

The branch of the bank is located
The payee or the holder maintains an account

Mr. A holds an account in Navrangpura Branch, Ahmedabad of “ XYZ” Bank, issues a cheque payable in favor of B. B, who holds an account with the M.S University Road Branch, Vadodara of the “ PQR” bank, deposits the said cheque at Surat Branch of & lsquo PQR bank' and the cheque is dishonored. The complaint will have to be filed before the court having jurisdiction where the M.S University road branch is situated.
A holds an account with the Navrangpura branch, Ahmedabad, of & quot XYZ& quot Bank issues a cheque payable in favor of B. B presents the cheque at the Vadodara Branch of the & lsquo XYZ' Bank ( but B does not hold an account in any branch of the & quot XYZ& quot bank) and the cheque is dishonored. The complaint will have to be filed before the court having jurisdiction over the Navrangpura branch, Ahmedabad, of & quot XYZ& quot Bank.

Why do you need a lawyer for a cheque bounce case?

Advocate Chikirsha Mohanty

4.0 | 2+ user ratings

Greater Kailash - 1, Delhi

5 years

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Comments by Users

Adity
What about the rules set in bhaskaran case regarding jurisdiction

Reply by LawRato
Bhaskaran case calls for a stricter interpretation of Section 138 of the Negotiable Instruments Act, 1881 (NIA) precisely because of its misemployment so far as choice of place of suing is concerned. The Court, in Bhaskaran Case had held that the jurisdiction to try an offence under Section 138 NIA could not be determined only by reference to the place where the cheque was dishonoured as the dishonour of the cheque was not by itself an offence under Section 138 NIA and that the offence was completed only when the drawer failed to pay the cheque amount within the period of fifteen days stipulated under clause (c) of the proviso to Section 138 of the Act and held that any court within whose jurisdiction any of the above acts were committed had jurisdiction.