TaxTMI 
TaxTMI 
2018 (4) TMI 420
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....k. The petitioner, it has been alleged, tried to return the amount to the complainant/ O.P. No. 2 vide three cheques, the first being a cheque drawn on Punjab National Bank, Daulat Ram Chauk, Katihar for the amount of Rs. 11,00,000/-(eleven lakhs); the second cheque being drawn on Central Bank of India, Katihar for the amount of Rs. 11,00,000/-(eleven lakhs) and the third cheque again of Rs. 11,00,000/-(eleven lakhs) drawn on Bank of Baroda, Katihar Branch. 3. On presentation of the aforesaid cheques in the account of complainant/O.P. No. 2, the cheques could not be honoured because of insufficient funds. Even after notice to the petitioner/accused, no money was forthcoming; hence the instant complaint was lodged. 4. It further appears from the records that complainant/O.P. No. 2 had also filed a Police Case at Katihar vide Katihar (Town) P.S. Case No. 140 of 2010 instituted for the offences under Sections 420, 406, 465, 468, 471, 506, 120(B) of the Indian Penal Code against the petitioner. The aforesaid case also relates to the business dispute between the parties. The aforesaid Police Case is still pending trial at Katihar. It was thus submitted by the accused/petitioner th....
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....onth of the date on which the cause of action arises under clause (c) of the proviso to section 138: [ Provided that the cognizance of a complaint may be taken by the Court after the prescribed period, if the complainant satisfies the Court that he had sufficient cause for not making a complaint within such period;] (c) no Court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under section 138.] [(2) The offence under section 138 shall be inquired into and tried only by a Court within whose local jurisdiction,- (a) if the cheque is delivered for collection through an account, the branch of the bank where the payee or holder in due course, as the case may be, maintains the account, is situated; or (b) if the cheque is presented for payment by the payee or holder in due course, otherwise through an account, the branch of the drawee bank where the drawer maintains the account, is situated. Explanation.-For the purposes of clause (a), where a cheque is delivered for collection at any branch of the bank of the payee or holder in due course, then, the cueque sh....
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....rom the bank regarding the return of the cheque as unpaid; and (c) the drawer of such cheque fails to make the payment of the said amount of money to the payee or as the case may be, to the holder in due course of the cheque within fifteen days of the receipt of the said notice. Explanation-For the purposes of this section, "debt or other liability" means a legally enforceable debt or other liability." 13. The pre-requisites for initiating a proceeding under Section 13 of the Negotiable Instruments Act, therefore is: (i) issuance of the cheque; (ii) presentation of the cheque to the bank; (iii) retaining the cheque unpaid to the drawer bank; (iv) giving notice in writing to the drawer of the cheque demanding payment of the cheque amount and; (v) failure of the drawer to make payment within fifteen days of the receipt of the notice. 14. The prevalent view as indicated above was that it was not necessary that all the above acts should have taken place at the same locality/place; rather it could have been effected at different locations. Since the combination of all the above requirements/facts was considered to be essential for completion of the offence under ....
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....uestion of jurisdiction under a situation when the appellant before it was from Chandigarh, who had issued a cheque drawn on a bank at Chandigarh which was dishonoured. Notice of payment of the dishonoured cheque was issued from the Head Office of the complainant at Delhi and on failure of the appellant to pay the money within 15 days of the notice, complaint was filed in Delhi. 18. Ordinarily, the Courts below, in view of the judgment in K Bhaskaran (supra) held that Delhi Court had jurisdiction to try the complaint. However, the drawer/appellant contended that Chandigarh Court only had the jurisdiction to try the case. The Supreme Court, but held that a Court derives its jurisdiction when a cause of action arises and such jurisdiction cannot be conferred on or for any act of omission on the part of the accused. It further held that the receipt of notice and not issuance of notice will give rise to cause of action. This led the Supreme Court deliver that Delhi Court will not have the jurisdiction to try the case. 19. In view of the different strand of thinking in the two cases referred to above, viz. K. Bhaskaran (Supra) and Harman Electronics Private Limited (supra), the Su....
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....e in hand were presented at Bhagalpur in the bank account of O.P. No. 2, only the Court at Bhagalpur shall have the jurisdiction to try the instant complaint. 26. In Bridgestone India Private Limited versus Inderpal Singh (2016) 2 SCC 75, the appellant before the Supreme Court (payee or holder in due course) had lodged a case at Indore for dishonour of the cheque issued by the accused at Chandigarh, drawn an a bank in Chandigarh. The Supreme Court, in view of Section 142(2) of the Negotiable Instruments Act held that the Court at Indore only had the jurisdiction and not at Chandigarh which was the situs of the drawer bank. 27. So far generally with respect to jurisdiction. 28. Now over to the other ground raised by the petitioner that since the cheques were not crossed, it would be expected that they would be presented for encashment over the counter which could only be done at the drawer bank, the jurisdiction in that case would lie to a Court at Katihar. 29. Chapter XIV of the Negotiable Instruments Act 1881 deals with crossed cheques. 30. A cheque is said to be crossed generally if it bears across its face, an addition of the words "and company" or any abbreviatio....