Cheque presentation jurisdiction under the Negotiable Instruments Act confirmed for complaints filed where collection occurs.

The amended scheme of Section 142 of the Negotiable Instruments Act, read with Section 142-A, confers territorial jurisdiction on the court within whose limits a cheque is delivered for collection through the payee's account. The amendment applies retrospectively and overrides the earlier contrary jurisdictional position relied on by the Magistrate. On that basis, the complaint under Section 138 filed at the place where the cheque was presented for collection was maintainable, and the order holding that the court lacked territorial jurisdiction was set aside.

---

---

Issues: Whether, in view of the amended provisions of the Negotiable Instruments Act, 1881, the complaint under Section 138 filed at the place where the cheque was presented for collection was within the territorial jurisdiction of the court.

Analysis: The amended scheme of Section 142 of the Negotiable Instruments Act, 1881, together with Section 142-A, confers jurisdiction on the court within whose territorial limits the cheque is delivered for collection through the payee's account. The amendment also gives retrospective effect to the jurisdictional rule and overrides the contrary position that had earlier followed from the decision relied on by the Magistrate.

Conclusion: The complaint was maintainable before the Judicial Magistrate First Class, Lahar, District Bhind, and the order holding that court to lack territorial jurisdiction was set aside.

---