Territorial jurisdiction under cheque dishonour law required transfer where the complaint was filed in the wrong district.

A complaint under Section 138 of the Negotiable Instruments Act must be tried by the court within whose local jurisdiction the branch of the bank where the payee maintains the account is situated when the cheque is delivered for collection through that account. On the stated facts, the payee's bank was in North District, while the complaint had been filed in West District, so the filing court lacked territorial jurisdiction. Transfer to the competent court in North District was therefore warranted.

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Issues: Whether the complaint under Section 138 of the Negotiable Instruments Act, 1881 was liable to be transferred on the ground that the court where it was filed lacked territorial jurisdiction under Section 142(2)(a) of the Negotiable Instruments Act, 1881.

Analysis: The complaint had to be tried by the court within whose local jurisdiction the branch of the bank where the payee maintains the account is situated when the cheque is delivered for collection through an account. On the facts, the payee's bank was situated in North District, while the complaint had been instituted in West District. The filing court therefore lacked territorial jurisdiction to try the complaint, and transfer to the competent court in North District was warranted.

Conclusion: The transfer of the complaint to the competent court in North District was justified and ordered in favour of the petitioner.

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