After the amendment of the Negotiable Instruments Act, 1881, in 2015, which came into force with effect from 15th June 2015, subsection (2) of Section 142 of this Act is as under:
“(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.”
It should be clear from the above legal provision that the territorial jurisdiction for the case under Section 138 of the Negotiable Instruments Act for cheque dishonour will be with the court within whose local jurisdiction the branch of the bank where the payee maintains the account is situated.
In view of these reasons, in the facts stated by you in your question (though you have not mentioned the facts clearly), if the cheque was deposited in the bank account of “B” at Bangalore, then the jurisdiction to try such case would be with the court at Bangalore. This will be irrespective of where “A” and “B” reside.
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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