Territorial jurisdiction in cheque dishonour cases cannot displace proceedings once notice is framed and evidence steps are underway

Where a Section 138 complaint had already moved beyond the pre-summoning stage, with notice under Section 251 CrPC framed and the Section 145(2) NI Act application allowed, the territorial return of the complaint was treated as inconsistent with the procedural posture of the case. The recorded mediation settlement also supported continuation of the proceedings before the same court. The order returning the complaint for want of territorial jurisdiction was quashed, and the complaint was directed to proceed before the trial court.

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Issues: Whether the Magistrate's order returning the complaint for want of territorial jurisdiction was liable to be quashed where proceedings under Section 145(2) of the Negotiable Instruments Act, 1881 had already been taken and the matter had been settled in mediation.

Analysis: The complaint under Section 138 of the Negotiable Instruments Act, 1881 had progressed beyond the pre-summoning stage. Notice under Section 251 of the Code of Criminal Procedure, 1973 had been framed and the application under Section 145(2) of the Negotiable Instruments Act, 1881 had already been allowed. In that situation, the territorial return order was found to be inconsistent with the governing position applied by the Court, and the recorded mediation settlement also supported continuation of the proceedings before the same court.

Conclusion: The order returning the complaint for want of territorial jurisdiction was quashed, and the complaint was directed to proceed before the trial court.

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