Magistrate has jurisdiction under Section 138 of Negotiable Instruments Act | Legal notice challenge dismissed

The High Court of Jammu and Kashmir upheld the Magistrate's jurisdiction to entertain a complaint under Section 138 of the Negotiable Instruments Act, as the cause of action occurred within the court's jurisdiction. The court rejected the petitioner's challenge regarding the legal notice of demand, stating that issues of notice service would be determined during trial and were not relevant at the stage of issuing process. Consequently, the petition was dismissed.

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Issues:
Jurisdiction of the court to entertain a complaint under Section 138 of the Negotiable Instruments Act and the validity of legal notice of demand served.

Jurisdiction Issue Analysis:
The petitioner challenged the criminal complaint filed under Section 138 of the Act, arguing that the Magistrate had no jurisdiction to entertain the complaint as the bank on which the cheques were issued is located outside the Magistrate's jurisdiction. The petitioner relied on the Supreme Court judgment in Dashrath Rupsing Rathod v. State of Maharashtra, (2014) 9 SCC 129. However, Section 142(2) of the Act clarifies that the court within whose jurisdiction the cheque is presented for payment by the payer through his account also has jurisdiction to entertain the complaint. The court noted that the cheques were dishonored when presented at a bank branch in Srinagar, establishing the cause of action within the jurisdiction of the Srinagar court. Thus, the jurisdictional challenge by the petitioner was deemed without merit.

Legal Notice Issue Analysis:
The petitioner contested the validity of the legal notice of demand, claiming it was not served upon him. The complaint, however, stated that the notice was issued on a specific date and served the next day, supported by photocopies of postal receipts. The court acknowledged advancements in postal services like speed post, making it plausible for a notice dispatched on one day to reach its destination the next day. The court emphasized that the actual service of the notice would be determined during trial, and the Magistrate was not required to delve into this matter at the stage of issuing process against the accused. Consequently, the court found no merit in the petitioner's argument regarding the legal notice and dismissed the petition.

In conclusion, the High Court of Jammu and Kashmir upheld the jurisdiction of the Magistrate to entertain the complaint under Section 138 of the Negotiable Instruments Act, as the cause of action had arisen within the court's jurisdiction. Additionally, the court rejected the petitioner's challenge regarding the legal notice of demand, emphasizing that such matters would be addressed during trial and were not necessary considerations at the stage of issuing process against the accused. The petition was dismissed.

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