• Jurisdiction of cheque bounce (Sec 138 NIA) complaint

Dear Sir , 
I have recently shifted to Chennai. Before than I was doing my own business in UP . I need to file a cheque bounce matter ( related to my earlier business in UP) as one of my vendor's cheque has bounced. 
My company's bank account is still in UP . Also GST registration was done in UP .
Can I file 138 cheque bounce complaint in Chennai or do I need to file it in UP only ?
For 138 complaints how is the jurisdiction decided ? is it as per my bank branch or my company address or my permanent address ?
Asked 11 days ago in Criminal Law from Chennai, Tamil Nadu
Religion: Hindu

Dear Client,

Dishonour of Cheque Cases can only be filed before the Court within whose local jurisdiction the bank branch of the payee, where the payee presents the cheque for payment is situated.

And

As per the Negotiable Instruments (Amendment) Act, 2015 a complaint can be filed under Section 138 for dishonor of cheque at a court within whose local jurisdiction:-
 

  • The branch of the bank is located

  • The payee or the holder maintains an account

Jaswant Singh
Advocate, Gurugram
261 Answers

4.8 on 5.0

Dear Sir,

The jurisdiction of filing cheque dishonour cases under Section 138 of the N.I. Act is now changed by the above Ordinance as under:

  • Now a cheque bouncing case can be filed only in the court at the place where the bank in which the payee has account is located. For example, if you are based at Delhi and you have an account in a bank in a particular area of Delhi. You receive a cheque from someone in Mumbai. You present your cheque in Delhi in the bank where you have your account. Now, if this cheque is dishonoured, then the cheque bounce case can be filed only in Delhi in the court which has jurisdiction over the area where your bank is located.
  • Secondly, once you have filed a cheque bounce case in one particular court at a place in this manner, subsequently if there is any other cheque of the same party (drawer) which has also bounced, then all such subsequent cheque bounce cases against the same drawer will also have to filed in the same court (even if you present them in some bank in some other city or area). This will ensure that the drawer of cheques is not harassed by filing multiple cheque bounce cases at different locations. So, even multiple cheque bounce cases against the same party can be filed only in one court even if you present the cheques in different banks at different locations.
  • Thirdly, all cheque bounce cases which are pending as on 15 June 2015 in different courts in India, will be transferred to the court which has jurisdiction to try such case in the manner mentioned above, i.e., such pending cases will be transferred to the court which has jurisdiction over the place where the bank of the payee is located. If there are multiple cheque bounce cases pending between the same parties as on 15 June 2015, then all such multiple cases will be transferred to the court where the first case has jurisdiction as per above principle.

Netravathi Kalaskar
Advocate, Bangalore
1730 Answers
5 Consultations

5.0 on 5.0

Dishonour of Cheque Cases can only be filed before the Court within whose local jurisdiction the bank branch of the payee, where the payee presents the cheque for payment is situated

 

you have to file cheque bouncing case in UP only the cases relating to the offence u/s 138 NI Act have to be tried under Act within whose jurisdiction cheque is presented by the drawee.

Ajay Sethi
Advocate, Mumbai
58473 Answers
3536 Consultations

5.0 on 5.0

Dear Client,

Offence of rejection/return of cheque u/s 138 of NI Act will be enquired into and tried only by a Court within whose local jurisdiction the bank branch of the payee, where the payee presents the cheque for payment is situated.

Get it bounced in Chennai and than file suit there. Make sure you have opened an account there. But if the cheque in issued in company name than account must be in company name.

Yogendra Singh Rajawat
Advocate, Jaipur
8242 Answers
7 Consultations

4.7 on 5.0

You have to.fole.cheque bounce case in jurisdiction where the bank branch at which cheque bounced is situated.

Your bank branch where cheque was given for disbursement.

Shubham Jhajharia
Advocate, Ahmedabad
13124 Answers
50 Consultations

5.0 on 5.0

Dear Sir,

 

 -  As per U/S 142 (2) Cheque bounce case can be filed only in a court which has the territorial jurisdiction over the place where the cheque is dishonored by the bank on which it is drawn ([Case Citation for your reference -Dashrath Rupsingh Rathod v. State of Maharashtra, (2014) 9 SCC 129].

 

Hope above small brief will be able to help to make you understand clearly. 

 

Regards

 

Vivek Arya

Vivek Arya
Advocate, Gurgaon
123 Answers
2 Consultations

5.0 on 5.0

You need to file the complaint in the court having jurisdiction over the bank in which the original account of the bounced cheque is maintained by you.

Prashant Nayak
Advocate, Mumbai
6126 Answers
5 Consultations

4.8 on 5.0

In order to avoid the jurisdiction issue which the other party may take, you Should file it in UP only.

Mayank Sapre
Advocate, New Delhi
161 Answers

5.0 on 5.0

Dishonour of Cheque Cases can only be filed before the Court within whose local jurisdiction the bank branch of the payee, where the payee presents the cheque for payment is situated, 

and in your case,

UP will be the undisputed jurisdiction,

 

Suneel Moudgil
Advocate, Panipat
232 Answers

4.0 on 5.0

cheque bouncing complaints could be filed in places where the cheque was deposited. But in 2014, The Supreme Court had ruled, in the case of Dashrath Roopsingh Rathod versus State of Maharashtra & Another, that for bounced cheques, cases have to be filed only at the place where the branch of the bank on which the cheque was drawn was located.

Mohammed Mujeeb
Advocate, Hyderabad
5502 Answers
3 Consultations

4.5 on 5.0

The court within whose jurisdiction, the bank branch, in which the cheque was deposited for encashment by the payee of the cheque, is situated, will have jurisdiction to try the 138 complaint

Yusuf Rampurawala
Advocate, Mumbai
3469 Answers
14 Consultations

5.0 on 5.0

1) If the cheque is related to Business than Business address, and in that city you can file case against that person.

Ganesh Kadam
Advocate, Pune
6054 Answers
43 Consultations

4.9 on 5.0

A complaint for an offence committed under S.138 of Negotiable Instruments Act shall be in the court where the cheque has been deposited for collection.  If you have submitted in UP branch and bounced in UP then the complaint can be filed in UP.

My number is available in google 

Regards 

G.Rajaganapathy 

Lawyer 

High Court of Madras 

Rajaganapathy Ganesan
Advocate, Chennai
1236 Answers
8 Consultations

4.9 on 5.0

1. In the circumstances described by you, the 138 matter can be filed only in UP, where the bank branches are located. Filing matter in Chennai, would not out of jurisdiction.

Keep Smiling .... Hemant Agarwal

Hemant Agarwal
Advocate, Mumbai
1531 Answers
8 Consultations

5.0 on 5.0

- The offence of rejection/return of cheque u/s 138 of NI Act will be enquired into and tried only by a Court within whose local jurisdiction the bank branch of the payee, where the payee presents the cheque for payment is situated.

- Hence, if you will present the said cheque in your bank account situated in Chennai , then the Juridiction will be there. But it will be difficult to proof the case there , as the transaction with the said vendor was taking place in U.P. and further , your companys account is still in U.P.

- Better to file the said case before the court of U.P. , and further the case can be filed by a POA on behalf of you.

 

Dont forget to positive rating ...

Good Luck

Mohammed Shahzad
Advocate, Delhi
274 Answers
9 Consultations

5.0 on 5.0

If cheque’s is deposited in Chennai then jurisdiction would  be Chennai 

 

there must be clause in contract regarding resolution of disputes . It must be mentioned that subject to jurisdiction of courts at Chennai only 

Ajay Sethi
Advocate, Mumbai
58473 Answers
3536 Consultations

5.0 on 5.0

Yes Id you shift and again deposit the same then it will be chennai

Prashant Nayak
Advocate, Mumbai
6126 Answers
5 Consultations

4.8 on 5.0

Yes

The law has made it easier for the aggrieved party to recover his money

The aggrieved party cannot be expected to deposit the cheque where the defaulter is living

Yusuf Rampurawala
Advocate, Mumbai
3469 Answers
14 Consultations

5.0 on 5.0

If the branch concerned is Chennai then it can be filed in Chennai as per the rules.

Shubham Jhajharia
Advocate, Ahmedabad
13124 Answers
50 Consultations

5.0 on 5.0

Open fresh account.

Yogendra Singh Rajawat
Advocate, Jaipur
8242 Answers
7 Consultations

4.7 on 5.0

May be yes,

but still not much convinced,

if other party raises any dispute on jurisdiction then you might face some issues,

else it is CHENNAI where cheque will be presented.

 

Suneel Moudgil
Advocate, Panipat
232 Answers

4.0 on 5.0

  1. As per the information mentioned in the present query, makes it clear that you wish to know the jurisdictional aspect in cheque’s bounce cases and that is why approached our forum for getting valuable replies.
  2. Yes, as per the subsequent query, you yourself have understood the practice of law in cheque bounce cases.
  3. Yes, if you deposit it in your branch in your city and it gets bounced then the case will have to filed therein in your city only.
  4. And other party will have to travel for trial proceedings, then they can’t avoid the trial court proceedings.

Sanjay Baniwal
Advocate, South Delhi
3417 Answers
7 Consultations

5.0 on 5.0

If you have a bank account in Chennai, you get the cheque bounced in Chennai, provided the cheque should be in your personal name or you should have a bank account in your company's name in Chennai if the cheque has been issued in the company's name.

You can file a cheque bounce case in Chennai accordingly

T Kalaiselvan
Advocate, Vellore
48555 Answers
576 Consultations

5.0 on 5.0

Altogether the cheque given in the name of company should have an address and account in Chennai so that you can file a cheque bounce case in Chennai

T Kalaiselvan
Advocate, Vellore
48555 Answers
576 Consultations

5.0 on 5.0

1.  IF you do what you have just stated, THEN you would become liable for harassment and intimidation, more so since your new bank account would have been opened after the cheque date of the opposite party.

Hemant Agarwal
Advocate, Mumbai
1531 Answers
8 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer