2022 (8) TMI 1049 - HC - Indian Laws

Dishonor of Cheque - bearer cheque - the court within whose jurisdiction the accused has an account has the jurisdiction or not - HELD THAT - From the Annexure-1 and Annexure-2, of the petition, it appears that the petitioner has account, maintained in the State Bank of India, Hojai Branch. Being the holder of the cheque, and having his account maintained at State Bank of India, Hojai Branch, the petitioner had presented the cheque there for collection. He received the intimation about dishonor of the cheque in question through the State Bank of India, Hojai Branch In view of the provision of section 142(2)(a) of the N.I. Act, the Court at Hojai which has jurisdiction to try the same. There is no quarrel at the Bar in this regard, that in view of section 142(2) (a) of the said Act, the learned court below has the jurisdiction to try the offence. Of course, the position would have been quite different if the petitioner had no account at Hojai. This court is of the considered opinion that the impugned order, so passed by the learned court below has failed to withstand the test of legality, propriety and correctness and the same require interference of this court - the matter is remanded to the learned court below, with a direction to proceed with the same in accordance with law.

Summary

Issues:
Challenge to the order dated 22.06.2022 passed by the learned SDJM, Hojai in N.I. Case No. 03 of 2022 under section 138 N.I. Act based on territorial jurisdiction.

Analysis:
The petitioner challenged the order dismissing the case due to lack of territorial jurisdiction, arguing that the classification of cheques as bearer or cross cheques is irrelevant under the N.I. Act. The petitioner, being the holder of the bearer cheque, presented it for collection at his bank in Hojai, thus falling under the jurisdiction of the court at Hojai as per Section 142(2)(a) of the N.I. Act. The respondent's counsel also agreed that the court below had jurisdiction to try the offense under section 138.

The High Court examined the relevant provisions of the N.I. Act, emphasizing that there is no distinction between bearer and cross cheques for jurisdictional purposes. The Act considers any dishonored cheque, regardless of type, as an offense under section 138. As the petitioner maintained an account at the State Bank of India, Hojai Branch, and presented the cheque there, the court at Hojai had jurisdiction as per Section 142(2)(a). The court cited a Supreme Court case supporting this interpretation of jurisdiction under the Act.

Consequently, the High Court found the lower court's dismissal on grounds of territorial jurisdiction to be legally incorrect and set aside the impugned order. The matter was remanded to the lower court for further proceedings in accordance with the law, with each party bearing its own costs.