Dishonour of Cheque - territorial jurisdiction - Foreign...

Dishonour of Cheque - territorial jurisdiction - Foreign instrument - Cheque not made payable in India; and, was not drawn on a bank in India - The court noted that the cheque, though foreign, was presented for payment in Delhi, thereby invoking the jurisdiction of Indian courts per the amended Section 142 of the NI Act. The amendments allow for the court within whose local jurisdiction the cheque is presented for collection to have authority over the matter. The court concluded that Section 138 of the NI Act, despite the cheque being a foreign instrument, applied due to its presentation in Delhi. The NI Act’s provisions cater specifically to where the cheque was presented and dishonored, making the place of its origin irrelevant in this context.