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TMI Blog2020 (10) TMI 311X X X X Extracts X X X X X X X X Extracts X X X X ..... s per the decision of the Delhi High Court in Good Luck Traders Vs. State and Others [ 1779123 ], merely because the cheque has been presented at non-home branch of drawee bank, it does not in any manner become the drawee bank. As per Sub-section (2) of Section 142 of the Negotiable Instruments Act, 1881, amended through the Negotiable Instruments (Amendment) Act, 2015, the offence under Section 138 of the Negotiable Instruments Act shall be inquired into and tried only by a court within whose local jurisdiction the cheque is delivered for collection through an account, the branch of the bank where the payee or holder in due course maintains the account is situated, except in cases of bearer cheques, which are presented to the branch of the drawee bank and in that case, the local court of that branch would get jurisdiction. Explanation to Sub-section (2) of Section 142 of the Act clarifies that even if the cheque is presented for collection at any branch of the bank of the payee or holder in due course, then, the cheque shall be deemed to have been presented to the branch of the bank in which the payee or holder in due course, as the case may be, maintains the account - In this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was frozen in the year 2015. 4. He further submitted that the said cheques were given only for security purpose and there is no liability for the said cheques. The petitioners were shocked to receive a notice under Section 138 of the Negotiable Instruments Act, dated 03.03.2017 from the respondent bank, as if two cheques of Kotak Mahindra Bank, (the respondent bank), were issued to the respondent bank and the same were presented for collection in the frozen account by the respondent bank. He further submitted that the blank cheques which were given at the time of availing the loan in Calcutta were presented in Chennai branch of Kotak Mahindra Bank in the account which was frozen by the respondent bank and notice was issued and the present complaint has been filed by the respondent bank. He further submitted that admittedly, the entire transaction took place only in Calcutta, however, the cheques were presented in the Chennai and legal notice was issued from Chennai and based on that, the respondent has filed the private complaint before the Court at Chennai. He further submitted that the Court at Chennai is not having jurisdiction to try the case and therefore, he prayed to qua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account, is situated. 8. He further submitted that as per the Explanation to Section 142(2) of the Negotiable Instruments Act, where a cheque is delivered for collection at any branch of the bank of the payee on holder in due course, then, the cheque shall be deemed to have been delivered to the branch of the bank in which the payee or holder in due course, as the case may be, maintains the account. He further submitted that the aforesaid Ordinance came up for consideration before the Hon'ble Supreme Court in M/s. Bridgestone India Pvt. Ltd., Vs. Inderpal Singh, CDJ 2015 SC 938 wherein it was held that in view of the amendment introduced in Section 142 (2) (a) of the Negotiable Instruments Act, jurisdiction for initiating proceedings for the offence under Section 138 of Negotiable Instruments Act is vested in the court, where the cheque is delivered for collection (through an account of the branch of the bank where the payee or holder in due course maintains an account). 9. He further submitted that since the respondent bank is having branches all over the country, the respondent has presented the cheques in the branch situated at Chennai and hence, the courts at Chennai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... um of ₹ 26,958, drawn on the Union Bank of India Chandigarh, dated 02.05.2006, was presented for encashment at the IDBI Bank, Indore, which intimated its dishonor to the appellant on 04.08.2006, we are of the view that the Judicial Magistrate, First Class, Indore, would have the territorial jurisdiction to take cognizance of the proceedings initiated by the appellant under Section 138 of the Negotiable Instruments Act, 1881, after the promulgation of the Negotiable Instruments (Amendment) Second Ordinance, 2015. The words ...as if that Sub-Section had been in force at all material times... used with reference to Section 142(2), in Section 142A(1) gives retrospectivity to the provision. 13. From the aforesaid decision, it is clear that Section 142(2)(a), amended through the Negotiable Instruments (Amendment) Second Ordinance, 2015 vests jurisdiction for initiating proceedings for the offence under Section 138 of the Negotiable Instruments Act, inter alia in the territorial jurisdiction of the Court, where the cheque is delivered for collection (through an account of the branch of the bank where the payee or holder in due course maintains an account). 14. In this case, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fy from home branch of the drawee branch as to whether or not there was any impediment in encashment of the cheque drawn at home branch. Even otherwise, in the event of encashment, the amount of cheque would be required to be debited in the account of the accused maintained at home branch as the amount was only payable by the home branch of drawee bank. Therefore, the presentation of cheque at non-home branch of drawee bank being the cheque which is payable at par/multi-city cheque, will not change the character of drawee bank and would not confer territorial jurisdiction on Chennai Courts. 16. As per the aforesaid decision, merely because the cheque has been presented at non-home branch of drawee bank, it does not in any manner become the drawee bank. 17. As per Sub-section (2) of Section 142 of the Negotiable Instruments Act, 1881, amended through the Negotiable Instruments (Amendment) Act, 2015, the offence under Section 138 of the Negotiable Instruments Act shall be inquired into and tried only by a court within whose local jurisdiction the cheque is delivered for collection through an account, the branch of the bank where the payee or holder in due course maintains the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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