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2021 (12) TMI 40 - HC - Indian LawsDishonor of Cheque - delayed supply of products specified in the purchase order - territorial Jurisdiction - whether the Commercial Court in Bengaluru has no territorial jurisdiction to entertain the suit on the premise that the cause of action has arisen in Delhi and the Courts in Delhi alone have the jurisdiction to entertain the suit? - HELD THAT:- The cheque was issued by the defendant company towards purchase of materials from the plaintiff. Now, the question that needs to be answered is "whether all the materials were supplied to the defendant or not?" The answer to this question is found in Ex.P9(a) i.e., the email sent by the defendant wherein the defendant has admitted that the issue relating to the software is resolved - From the above said communications, there is no difficulty to hold that hardware and software were delivered in time. The defendant had requested the plaintiff to hold the cheque for few more days. In the next email, the defendant has requested not to present the cheque on the premise there is delay in delivery of complete licenses. It is also relevant to note that the contract for supply of materials between the plaintiff and the defendant is at Ex.P3. This document does not stipulate any time limit for the plaintiff to supply the goods. The plaintiff has established supply of the products to be within time. The defendant has failed to establish short/delayed supply of materials. Thus, the defendant cannot evade the liability. Though the defendant has taken a stand that the cheque is issued as a security towards the transaction between the plaintiff and the defendant, since the plaintiff is able to establish supply of materials specified in the purchase order and the defendant having failed to establish alleged short supply/delayed supply, assuming that the cheque was issued towards security, then also the said cheque would attract presumption under Section 118 of the Negotiable Instruments Act, 1881 and the defendant has failed to rebut the presumption under Section 118 of the Negotiable Instruments Act, 1881. Territorial jurisdiction - HELD THAT:- Based on the admission of DW1, the Court has come to the conclusion that the cause of action has also arisen in Bengaluru. Moreover, the contention relating to the territorial jurisdiction is not a contention which goes into the root of the matter. The defendant had appeared and participated in the trial and led evidence. No prejudice is caused to the defendant by the act of the Commercial Court in entertaining and deciding the suit. Thus, this contention of the appellant again has no merit. Appeal dismissed.
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