2020 (2) TMI 899 - HC - Indian Laws

Maintainability of Complaint - territorial jurisdiction - it is submitted by the applicant that subsequently the legislature has amended Section 142 of Negotiable Instruments Act and has inserted Section 142-A of Negotiable Instruments Act and, therefore, in the light of the amended provisions of law, complaint lodged by the applicant before the Court of Judicial Magistrate First Class, Lahar, District Bhind is maintainable. HELD THAT - The Supreme Court in the case of Dashrath Rupsing Rathod 2014 (8) TMI 417 - SUPREME COURT had held that the Court where the cheque was presented has no territorial jurisdiction to entertain the complaint under Section 138 of the Negotiable Instruments Act. Thereafter, an amendment in Section 142 of Negotiable Instruments Act was incorporated and Section 142-A of Negotiable Instruments Act - From the perusal of amended Section 142(2) of Negotiable Instruments Act, it is clear that the place where a cheque was delivered through an account, the Court having local jurisdiction over such area shall also have the territorial jurisdiction to entertain the complaint. Thus, in view of the amended provisions of Section 142 of Negotiable Instruments Act, the complaint filed by the applicant before the Court of Judicial Magistrate First Class, Lahar, District Bhind is within the territorial jurisdiction of the said Court - the order passed by Judicial Magistrate First Class, Lahar, District Bhind is hereby set aside - The Trial Court is directed to restart the proceedings after giving fresh notices to the respondent because it appears that the respondent remained unserved in the present proceeding - application disposed off.

Summary

Issues:
1. Territorial jurisdiction of the Court in a case under Section 138 of Negotiable Instruments Act.
2. Effect of amendments in Section 142 and insertion of Section 142-A of Negotiable Instruments Act on territorial jurisdiction.
3. Validity of the complaint filed before the Court of Judicial Magistrate First Class, Lahar, District Bhind.

Analysis:
1. The judgment deals with the issue of territorial jurisdiction in a case under Section 138 of the Negotiable Instruments Act. The applicant challenged the order of the Judicial Magistrate First Class, Lahar, District Bhind, which held the complaint to be without territorial jurisdiction based on a Supreme Court ruling in Dashrath Rupsingh Rathod vs. State of Maharashtra & Ors. The applicant argued that subsequent amendments to Section 142 of the Act make the complaint maintainable.

2. The Court considered the amendments to the Negotiable Instruments Act, specifically the insertion of Section 142-A, which validates transfer of pending cases to the appropriate court. The Court referred to the case of Bridgestone India Private Limited vs. Inderpal Singh, where it was clarified that the amended provisions of Section 142 now allow the Court where the cheque was delivered for collection to have territorial jurisdiction over the case.

3. The judgment concludes that in light of the amended provisions of Section 142 of the Negotiable Instruments Act, the complaint filed by the applicant before the Court of Judicial Magistrate First Class, Lahar, District Bhind is within the territorial jurisdiction of the said Court. The order of the Judicial Magistrate First Class, Lahar, District Bhind, dated 10.11.2014, is set aside, and the Trial Court is directed to restart the proceedings after serving fresh notices to the respondent who remained unserved initially.

Conclusion:
The judgment clarifies the impact of the amendments to the Negotiable Instruments Act on territorial jurisdiction in cases under Section 138. It emphasizes that the Court where the cheque was delivered for collection now has territorial jurisdiction to entertain complaints. The ruling sets aside the previous order and directs the Trial Court to proceed with the case within the appropriate jurisdiction.