Jurisdiction in cheque bounce when invoice limits jurisdiction to a place

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This topic contains 1 reply, has 2 voices, and was last updated by Dr. Ashok Dhamija Dr. Ashok Dhamija 2 weeks, 2 days ago.

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  • #4104


    What if on the invoices of the drawer it is mentioned “Subject to X Jurisdiction only” and wherein drawer has got his A/c at Y place….So where should drawer pursue it’s cheque bouncing case.. X Location or Y location….????

  • #4105

    When the invoice mentions “Subject to X jurisdiction only”, it is for the purposes of deciding the civil disputes, if any, that arises out of the business dealings concerning that invoice.

    However, in so far as the cheque bounce is concerned, the law has specifically laid down which court will have jurisdiction in the case of a cheque bounce.

    As per Section 142(2) of the Negotiable Instruments Act, for a cheque bounce case, where it is deposited in an account, that court will have the jurisdiction where the branch of the bank, where the payee maintains the account, is situated.

    Therefore, jurisdiction in a cheque bounce case will not have relation with the location of the bank account of the drawer, but it will related to the location of the bank account of the payee, i.e., to whom the cheque was issued.

    However, if the cheque was being encashed in cash (and not deposited in the bank account) and it gets dishonoured, then the jurisdiction will be with the court in whose area the branch of bank is located where the drawer maintains his account.


    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.

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