Delhi Courts Lack Jurisdiction for Section 138 Cases based on Notice

The Supreme Court ruled that Delhi Courts lacked jurisdiction to entertain a criminal complaint under Section 138 of the Negotiable Instruments Act, 1881 solely based on the issuance of a statutory notice from Delhi. Citing relevant case law, the Court emphasized that the mere issuance of a notice from Delhi was insufficient to confer jurisdiction. Due to the dishonor of the cheque in Vellore and the petitioner's medical issues, the Court ordered the transfer of the complaint from Delhi to Vellore for trial, without imposing any costs.

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Issues: Jurisdiction of Delhi Courts, Transfer of Criminal Complaint

Jurisdiction of Delhi Courts:
The petitioners sought transfer of a criminal complaint under Section 138 of the Negotiable Instruments Act, 1881 from Delhi to Pondicherry, arguing that the cheque in question was not in discharge of any debt but given as security. They contended that the Courts in Delhi lacked jurisdiction to entertain the complaint, as issuing statutory notices from Delhi did not confer jurisdiction. The Supreme Court analyzed the issue and cited the decision in Harman Electronics (P) Ltd. v. National Panasonic India (P) Ltd., emphasizing that the mere issue of a statutory notice was insufficient to vest Delhi Courts with jurisdiction. The Court also referred to the case of Dashrath Rupsingh Rathod v. State of Maharashtra & Anr., where it was ruled that issuing a notice from Delhi did not establish jurisdiction. The Court overruled an earlier decision in K. Bhaskaran v. Sankaran Vaidhyan Balan & Anr. and concluded that the Delhi Court could not exercise jurisdiction based solely on the notice of demand being issued from Delhi.

Transfer of Criminal Complaint:
Considering the factual position that the cheque was dishonored in Vellore where the bank was located, the Supreme Court decided to transfer the complaint to Vellore for further proceedings. The Court also noted that one of the petitioners had multiple medical problems, which would be addressed by transferring the proceedings from Delhi to Vellore. Consequently, the Court allowed the petition and directed the transfer of Criminal Complaint No.3960 of 2008 from the Metropolitan Magistrate at Patiala House Courts in New Delhi to the Chief Judicial Magistrate at Vellore for trial, or to any other competent Court. No costs were imposed in this decision.

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