2001 (2) TMI 984 - SUPREME COURT

What is meant by, "the bank" as mentioned in Clause (a) of the proviso to Section 138 of the Negotiable Instruments Act, 1881?

Does such bank mean the bank of the drawer of the cheque or covers within its ambit any bank including the collecting bank of the Payee of the cheque?

To which bank the cheque is to be presented for the purposes of attracting the penal provisions of Section 138 of the Act?

Held that:- Appeal allowed. We have perused the judgments of the Punjab & Haryana, Gujarat and Madras High Courts and their conflicting views and are of the opinion that the Madras High Court has not correctly interpreted the provisions of law in this behalf. As, admittedly, in this case the cheque was not presented before the drawer’s bank within the statutory period of six months, the criminal court had no jurisdiction to issue the process against the appellant. The impugned judgment of the High Court being contrary to law is thus not sustainable.