Facts of the case
The petitioner borrowed a loan of Rs.15, 00,000/- for business purposes from the respondent-company.
A cheque issued in partial repayment of the loan amount and drawn on the Syndicate Bank, City Market Branch, Bangalore, when presented for encashment to ING Vysya Bank, Gurgaon it had been dishonoured.
Complaint was filed before the Judicial Magistrate, First Class at Gurgaon under Section 138 of The Negotiable Instruments Act, 1881.
The Magistrate has taken cognizance and summoned the petitioners for appearance to face the trial.
Petitioners have, in that backdrop, filed the transfer petition seeking transfer of the complaint from Gurgaon to the competent Court at Bangalore.
The counsel for the petitioners argued is that the Courts at Gurgaon have no jurisdiction to entertain the complaint specially when the cheque in question was issued and dishonored at Bangalore and the offence, if any, was committed only at Bangalore. Issue of statutory notices to the petitioners from Gurgaon also does not confer jurisdiction upon the Courts concerned or justify continuance of the proceedings at Gurgaon.
The counsel for the respondent argued that the cause of action for filing the present complaint arose when the cheque was issued to the complainant company, when the intimation regarding dishonor of the said cheque was received, when the legal notice under Section 138 of the N.I. Act was sent to the accused and on the failure of the accused to make payment despite being served with the said notice within the stipulated period of 15 days. The cause of action is still subsisting and continuing. The Hon’ble Court of Gurgaon has jurisdiction to take cognizance of the offence as the cause of action arose within the jurisdiction of this court .
Judgment
The hon’ble Supreme Court stated that, “the only reason the complainant claims jurisdiction for the Courts at Gurgaon is the fact that the Complainant-respondent had issued the statutory notices relating to the dishonour of the cheque from Gurgaon. We do not think that issue of a statutory notice can by itself confer jurisdiction upon the Court to take cognizance of an offence under Section 138 of The Negotiable Instruments Act. Presentation of the cheque at a place of the choice of the complainant or issue of a notice from any such place do not constitute ingredients of the offence under Section 138 and cannot, therefore, confer jurisdiction upon the Court from where such acts are performed.”
The Petition was allowed and the case was transferred from the Court of Judicial Magistrate, First Class, Gurgaon,Haryana to the Court of competent jurisdiction of Chief Metropolitan Magistrate at Bangalore.
BY: ANKIT RAJPUT
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