Shakti Buildcon, seek transfer of SCC Nos.25668/2019 and 26875/2019, both titled ‘Atlanta Limited Vs.
The first two cheques that came to be dishonoured were presented by the respondent company through its bank at Nagpur, Maharashtra. Shroff, learned counsel for the respondent company, would contend that Section 142 of the Act of 1881 would override Section 406 Cr.P.C., in view of the non obstante clause therein, and that the two cases filed at Nagpur, Maharashtra, therefore cannot be transferred.
Sankaran Vaidhyan Balan and another [(1999) 7 SCC 510], this Court held that an offence under Section 138 of the Act of 1881 has five components: (1) drawing of the cheque, (2) presentation of the cheque to the bank, (3) returning of the cheque unpaid by the drawee bank, (4) giving notice in writing to the drawer of the cheque demanding payment of the cheque amount, and (5) failure of the drawer to make payment within 15 days of the receipt of the notice.
Significantly, the aforestated original Section 142 of the Act of 1881 was renumbered as Section 142(1) when amendments were made in the Act of 1881 by the Negotiable Instruments (Amendment) Act, 2015 (Act 26 of 2015).
Also Read: https://newslaw.in/case-type/civil/conflict-in-internal-organization-of-police-force-legal-analysis/
Shroff, learned counsel, upon the words: ‘shall be inquired into and tried only by a Court within whose local jurisdiction……’in
Section 142(2) to contend that the Courts at Nagpur would have exclusive jurisdiction in relation to the dishonoured cheques presented by the respondent company through its bank at Nagpur.
Section 142(2) now makes it clear that the jurisdiction to try such an offence would vest only in the Court within whose jurisdiction the branch of the Bank where the cheque was delivered for collection, through the account of the payee or holder in due course, is situated. Inderpal Singh [(2016) 2 SCC 75] affirmed the legal position obtaining after the amendment of the Act of 1881 and endorsed that Section 142(2)(a) of the Act of 1881 vests jurisdiction for initiating proceedings for an offence under Section 138 in the Court where the cheque is delivered for collection, i.e., through an account in the branch of the bank where the payee or holder in due course maintains an account.
Civil Judge, Senior Division, Nagpur; and the learned 20 Civil Judge, Senior Division, Nagpur, respectively, are transferred to the South West District Courts, Dwarka, New Delhi, to be tried along with Complaint Case Nos.
Case Title: YOGESH UPADHYAY Vs. ATLANTA LIMITED (2023 INSC 150)
Case Number: T.P.(Crl.) No.-000526-000527 / 2022
