Territorial jurisdiction under Section 138 NI Act can rest on cheque presentation at the local bank where a material act occurs.

Territorial jurisdiction for a Section 138 NI Act complaint may lie where one of the constituent acts of the offence occurs, because the offence is complete only when the cheque is drawn, presented, dishonoured, notice is issued, and payment is not made in sequence. Applying the principle reflected in Section 178(d) CrPC, the Court held that Sopore had jurisdiction since the cheque was presented at UCO Bank, Sopore, and presentation formed a material part of the offence. The later decision on notice issued from a different place was distinguished as inapplicable on these facts.

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Issues: Whether the court at Sopore had territorial jurisdiction to entertain a complaint under Section 138 of the Negotiable Instruments Act, 1881 when the cheque was presented there.

Analysis: Offence under Section 138 is complete only when the constituent acts of drawing the cheque, presentation, dishonour, issuance of notice, and failure to pay occur in sequence. Under the jurisdictional principle reflected in Section 178(d) of the Code of Criminal Procedure, where an offence consists of several acts done in different local areas, any court having jurisdiction over one of those local areas may try the offence. Since the cheque was presented at UCO Bank, Sopore, one of the material acts constituting the offence occurred within Sopore. The decision relied on in the later case concerning issuance of notice from a different place did not govern these facts because the jurisdictional basis here was presentation of the cheque at Sopore.

Conclusion: The court at Sopore had territorial jurisdiction to entertain and try the complaint.

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