Cheque dishonour jurisdiction turns on presentation and dishonour location; Vishakhapatnam forum remained maintainable despite Odisha-based transactions.

Territorial jurisdiction in a cheque-dishonour prosecution under the Negotiable Instruments Act depended on where the cheque was presented and dishonoured. Because the cheque was presented through the payee's banker at Vishakhapatnam and returned unpaid there, that forum was treated as having jurisdiction under Section 142(2). The fact that the underlying transactions took place in Odisha did not, by itself, defeat maintainability. The earlier authority cited by the petitioner was distinguished on its facts, as it involved a complaint filed in a forum wholly unconnected with presentation and dishonour. The complaint was therefore maintainable and no ground was made out to quash the proceeding under Section 482 CrPC.

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Issues: Whether the criminal proceeding under Section 138 of the Negotiable Instruments Act, 1881 pending before the Chief Metropolitan Magistrate, Vishakhapatnam lacked territorial jurisdiction and was liable to be quashed in exercise of inherent jurisdiction under Section 482 of the Code of Criminal Procedure, 1973.

Analysis: The complaint was founded on dishonour of a cheque which, on the materials placed, was presented through the payee's banker at Vishakhapatnam and returned unpaid there. In such circumstances, the place of presentation and dishonour assumes significance for determining jurisdiction under Section 142(2) of the Negotiable Instruments Act, 1881. The fact that the underlying transactions may have occurred in Odisha did not, by itself, displace the forum where the cheque was presented and dishonoured. The earlier decision relied upon by the petitioner was distinguished on facts, as that case involved a complaint filed in a forum wholly outside the place connected with presentation and dishonour of the cheque.

Conclusion: The complaint at Vishakhapatnam was held to be maintainable, and no ground was found to quash the proceeding under Section 482 of the Code of Criminal Procedure, 1973.

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