Territorial jurisdiction under the amended cheque dishonour law applies retrospectively, confirming maintainability before the proper court.

Territorial jurisdiction for a complaint under Section 138 of the Negotiable Instruments Act, 1881 is governed by amended Section 142(2), which places inquiry and trial before the court having local jurisdiction over the branch where the payee or holder in due course maintains the account when the cheque is delivered for collection through that account. Section 142A(1) gives that jurisdictional rule retrospective effect, overriding the Code of Criminal Procedure, 1973 and any contrary judgment or order, and deeming pending cases transferred accordingly. The complaint was therefore maintainable before the Judicial Magistrate, First Class, Indore, and the High Court's contrary order was set aside as unsustainable.

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Issues: Whether, after the Negotiable Instruments (Amendment) Second Ordinance, 2015, a complaint under Section 138 of the Negotiable Instruments Act, 1881 could be tried by the court within whose territorial jurisdiction the cheque was delivered for collection and whether Section 142A gave retrospective effect to the amended jurisdictional rule.

Analysis: The amended Section 142(2) of the Negotiable Instruments Act, 1881 provides that an offence under Section 138 is to be inquired into and tried by the court having local jurisdiction over the branch where the payee or holder in due course maintains the account, when the cheque is delivered for collection through that account. Section 142A(1) contains a non-obstante clause overriding the Code of Criminal Procedure, 1973 and any contrary judgment, decree, order or direction of any court, and states that pending cases shall be deemed transferred as if the amended sub-section had been in force at all material times. The effect of these provisions is that the earlier jurisdictional rule no longer governs and the amendment applies retrospectively to jurisdictional competence.

Conclusion: The complaint was maintainable before the Judicial Magistrate, First Class, Indore, and the High Court's order declining territorial jurisdiction was unsustainable.

Ratio Decidendi: For complaints under Section 138 of the Negotiable Instruments Act, 1881, territorial jurisdiction is determined by the amended Section 142(2), and Section 142A(1) gives that jurisdictional rule retrospective effect notwithstanding the Code of Criminal Procedure, 1973 or any contrary judicial order.

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