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Issues involved: Jurisdiction of court in cases u/s 138 of Negotiable Instruments Act.
The High Court of Bombay heard a case involving the jurisdiction of court in cases u/s 138 of Negotiable Instruments Act. The Respondents initiated proceedings before the Metropolitan Magistrate at Mumbai, seeking to transfer the complaint to a court in Delhi due to all relevant events occurring there. The learned Judge allowed the transfer application, but the Respondent challenged this decision in Revision before the Additional Sessions Judge, who set aside the order. The High Court analyzed the situation and found that the cheques were issued, transactions occurred, and the accused had business dealings in Delhi. The only Mumbai-related aspect was the issuance of a demand notice through a Counsel. Citing legal precedents, the High Court concluded that the order of the Metropolitan Magistrate did not require interference, and both petitions were allowed. In this judgment, the High Court of Bombay addressed the issue of jurisdiction in cases u/s 138 of Negotiable Instruments Act. The court considered the location of key events, such as the issuance of cheques, transactions, and business dealings, to determine the appropriate court for the case. The High Court emphasized that the legal position on jurisdiction was well-established based on previous court decisions, including the matter of National Small Industries Corporation v/s. Hermeet Singh Paintal & Anr. and Mrs. Preetha S. Babu v/s. Voltas Ltd. & Anr. The court ultimately upheld the order of the Metropolitan Magistrate, highlighting the significance of the events related to the case in Delhi over the minor Mumbai connection of issuing a demand notice.
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