Cheque dishonour jurisdiction lies where the payee's bank branch is situated when collection is through that account.

Where a cheque is delivered for collection through the payee's account, territorial jurisdiction under Section 142(2) of the Negotiable Instruments Act lies exclusively with the court within whose local limits the payee's bank branch is situated. Section 142A(1) gives this scheme overriding effect over the Code of Criminal Procedure, and the jurisdictional principle has been affirmed by the Supreme Court. As the cheque was presented for encashment through the complainant's Delhi account, the Delhi court had statutorily designated jurisdiction, the territorial challenge failed, and the complaint was maintainable.

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Issues: Whether the courts at Delhi had territorial jurisdiction to entertain a complaint under Section 138 of the Negotiable Instruments Act, 1881 where the cheque was drawn on a foreign bank branch but was presented for collection through the complainant's account in Delhi.

Analysis: The amended jurisdictional scheme under Section 142(2) of the Negotiable Instruments Act, 1881 confers exclusive jurisdiction on the court within whose local jurisdiction the branch of the bank where the payee or holder in due course maintains the account is situated, when the cheque is delivered for collection through an account. The non obstante clause in Section 142A(1) gives overriding effect to this scheme over the Code of Criminal Procedure, 1973, and the jurisdictional principle has been affirmed by the Supreme Court. Since the cheque was presented for encashment through the complainant's bank account in Delhi, the Delhi court fell within the statutorily designated jurisdiction.

Conclusion: The challenge to territorial jurisdiction failed, and the complaint was maintainable before the Delhi court.

Final Conclusion: The petition seeking quashing of the complaint was rejected on merits, and the connected applications were disposed of accordingly.

Ratio Decidendi: In a cheque dishonour case, where the cheque is delivered for collection through the payee's account, territorial jurisdiction lies exclusively with the court where the payee's bank branch is situated, notwithstanding the Code of Criminal Procedure, 1973.

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