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2008 (1) TMI 970

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....llant for presentation in the competent court of jurisdiction. 2. A suit was filed by the appellant herein as a summary suit seeking for recovery of Rs. 20,53,944/- against the defendants and also for interest @ 18% per annum. The defendants entered appearance and thereafter the plaintiff moved an application for service of summons for judgment upon the defendants. Summons for judgment were duly served upon the defendants and immediately thereafter, they filed an application for leave to defend the present suit. The defendants also moved an application under Order VII Rule 10 of the Code of Civil Procedure taking up the plea that this Court has no territorial jurisdiction to entertain the suit and, Therefore, the plaint should be returne....

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....ng to the aforesaid facts, it was held that merely because the aforesaid cheques were presented in the Delhi account of the appellant, the same would not vest any jurisdiction on this Court. Another plea raised by the appellant that the complaint under Section 138 of the Negotiable Instruments Act was filed at Delhi was dealt with by the learned Single Judge, stating that simply because such a complaint has been filed at Delhi would not confer any jurisdiction on the Civil Courts in Delhi. 3. The aforesaid findings and conclusions arrived at by the learned Single Judge are challenged in this appeal, on which we have heard the learned Counsel appearing for the appellant. We have also been taken through the records. Counsel appearing for t....

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....f the Hon'ble Supreme Court. 5. However, in the present case, the ratio of the aforesaid decisions could not be applicable, for in our considered opinion, no part of cause of action has arisen in Delhi, which is proved from the evidence on record. The defendant Company is situated at Village Kassar, Tehsil Bahadurgarh, District Jhajjar, Haryana and is working for gain from the same address. The goods were supplied from Faridabad to Bahadurgarh, which is also the case of the appellant as stated in the reply filed to the application under Order VII Rule 10 CPC. It is, thus, established and proved that the goods were not supplied from Delhi. All the invoices/bills were also issued by the appellant at Faridabad in the name of the defenda....

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....at the bank referred to in clause (a) of the proviso to the Section 138 had reference to the drawee bank on which the cheque is drawn and not all banks where the cheque is presented for collection, including the bank of the payee in whose favor the cheque is issued. In the said decision, the Hon'ble Supreme Court in paragraphs 9 and 10 held as follows: 9. The use of the words "a bank" and "the bank" in the Section is indicator of the intention of the Legislature. The former is indirect article and the latter is pre-fixed by direct article. If the Legislature intended to have the same meanings for "a bank" and "the bank", there was no cause or occasion for mentioning it distinctly and differently by using two different articles. It is....

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....ty of the drawer of the cheque such collecting bank is obliged to present the cheque in the drawee or payee bank on which the cheque is drawn within the period of six months from the date on which it is shown to have been issued. In other words a cheque issued by (A) in favor of (B) drawn in a bank named (C) where the drawer has an account can be presented by the payee to the bank upon which it is drawn i.e. (c) bank with a period of six months or present it to any other bank for collection of the cheque amount provided such other bank including the collecting bank presents the cheque for collection to the (C) bank. The non presentation of the cheque to the drawee-bank within the period specified in the Section would absolve the person issu....