Filing cheque dishonour complaint where base transaction took place

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    • #797
      Anonymous
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      Can one file the complaint under sec 138 of the Negotiable Instruments Act in the the court in whose local jurisdiction the base transaction have taken place instead of place of Drawee’s account where he deposited the same…..?

    • #800

      It is not possible. Now, under the provisions of sub-section (2) of Section 142 of the Negotiable Instruments Act, 1881, the case of cheque dishonour under Section 138 thereof can be filed in a court only as per the following provisions (this is applicable since 15 June 2015):

      “(2) The offence under Section 138 shall be inquired into and tried only by a court within whose local jurisdiction,—

      (a) 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; or

      (b) if the cheque is presented for payment by the payee or holder in due course, otherwise through an account, the branch of the drawee bank where the drawer maintains the account, is situated.

      Explanation.—For the purposes of clause (a), where a cheque is delivered for collection at any branch of the bank of the payee or holder in due course, then, the cheque shall be deemed to have been delivered to the branch of the bank in which the payee or holder in due course, as the case may be, maintains the account.”

      Therefore, it is not possible to file a cheque bounce case at any other place than is permissible under Section 142(2) of the N.I. Act as mentioned above.

           


      Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.

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