Territorial jurisdiction in cheque dishonour complaints turns on the place of dishonour, not payable-at-par banking convenience.

Territorial jurisdiction for complaints under Section 138 of the Negotiable Instruments Act is determined by the place where the cheque is dishonoured, read with Sections 138 and 142 and the general rule in Section 177 CrPC. The facility of payable-at-par or multi-city cheques, introduced for banking convenience, does not change the character of the drawee bank or shift jurisdiction to a non-home branch where the cheque is merely presented. Presentation at such a branch still depends on verification by the home branch and does not make that place the locus of the offence. On this reasoning, Delhi courts lacked territorial jurisdiction to entertain the complaints.

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Issues: Whether complaints under Section 138 of the Negotiable Instruments Act, 1881 could be filed before Delhi courts merely because the cheques were payable at par and could be presented at a non-home branch of the drawee bank situated in Delhi.

Analysis: Territorial jurisdiction in prosecutions under Section 138 is governed by the place where the cheque is dishonoured, as clarified by the Supreme Court. The statutory scheme under Sections 138 and 142, read with the general rule in Section 177 of the Code of Criminal Procedure, 1973, fixes jurisdiction at the court within whose local limits the offence is committed. The facility of payable at par or multi-city cheques was introduced for banking convenience and faster collection, but it does not alter the character of the drawee bank or shift the place of dishonour for criminal jurisdiction. Presentation of the cheque at a non-home branch still requires verification from the home branch and does not make that branch the relevant place for trial. Since proceedings had not reached the stage where evidence had commenced, the jurisdictional rule applied in full.

Conclusion: Delhi courts had no territorial jurisdiction to entertain and try the complaints, and the petitions were liable to be dismissed.

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