Team  SoOLEGAL

Jurisdiction of the court where the branch of the bank in which the payee maintains his account is situated can try a cheque bounce dispute: SC

Team SoOLEGAL 22 Sep 2020 4:29pm

Jurisdiction of the court where the branch of the bank in which the payee maintains his account is situated can try a cheque bounce dispute: SC

The Supreme Court on 16th September, 2020 while dismissing a transfer petition has iterated that the court within whose jurisdiction lies the concerned branch of the bank where the account of payee is maintained, would have jurisdiction to try the suit where a cheque is delivered through an account for collection.

In the present case, a petition has been filed under Section-406 of CrPCby the Himalaya Self Farming Groupseeking the transfer of appeals and further contending that the disputes between parties are subjected to come under the jurisdiction of courts in Siliguri.They had also stated that the head office of the group was also situated at Siliguri but the complaint against them was filed at Agra which was not reasonable unless it was done to harass them.

The court in this regard noted that though under the delivery challan, the disputes were subject to jurisdiction in Siliguri, but the petitioner is allowed to raise this issue before the Agra Court. The court also observed that this cannot be a ground to transfer the case.

Justice V. Ramasubramanian who was hearing the petition has said, “The fact that the respondent has its Head Office at Siliguri and that there is no reason why it chose to file a complaint in Agra except to harass the petitioners, cannot also be a ground for seeking transfer. Under Section 142(2)(a) of the Negotiable Instrument Act, the court within whose jurisdiction the branch of the bank where the payee maintains the account is situated, will have jurisdiction to try the offence, if the cheque is delivered for collection through an account.”

Until now, a complaint regarding the dishonour of cheque can only be filed in the court in whose jurisdiction the offence has been committed. Now with the 2015 amendment of the Negotiable Instruments Act the offence will be tried only by,(1) A court within whose local jurisdiction the branch of the drawee bank where the drawer maintains the account is situatedwhereby a cheque is presented for payment by the payee or holder in due course, otherwise through an account. (2)If the cheque is delivered for collection through an account, the branch of the bank where the payee or holder in due course, as the case may be, maintains the account, is situated.



Tagged: cheque bounce   Supreme Court   Section-406 of CrPC   Justice V. Ramasubramanian   Negotiable Instruments Act   Himalaya   Siliguri  
Did you find this write up useful? YES 0 NO 0
Featured Members view all

New Members view all

×

C2RMTo Know More

Something Awesome Is In The Work

0

DAYS

0

HOURS

0

MINUTES

0

SECONDS

Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.