2025 (7) TMI 1531 - SCH - Indian Laws

Seeking transfer of proceedings to Kolhapur Maharashtra - territorial jurisdiction - HELD THAT - From the record it appears that the complaint proceedings under Section 138 of the NI Act have been instituted at Jaipur on the allegations that the collecting Bank s Branch was at Jaipur and therefore the Court at Jaipur would have jurisdiction to proceed with the complaint in light of the provisions of Section 142(2)(a) of the NI Act. As regards the case pending in Calcutta it is found from the submissions made in the Transfer Petition that loan transaction had taken place at Kolhapur. In such circumstances without expressing any opinion on the question of jurisdiction as it is found that one proceeding between the parties is pending at Jaipur it would serve the ends of justice if both the proceedings are continued at Jaipur. The concerned court at Calcutta is directed to transmit the records of the proceedings to the Court of District Judge Jaipur who shall upon receipt of the records assign the matter to a Competent Court within its jurisdiction to deal with the aforesaid proceedings. The Transfer Petitions are accordingly disposed of.

Summary

The Supreme Court, through Hon'ble Justices Manoj Misra and Ujjal Bhuyan, addressed Transfer Petitions seeking relocation of two complaint cases: one under Section 138 of the Negotiable Instruments Act, 1881 ("NI Act") pending at Jaipur, and another relating to a loan transaction pending at Calcutta. The petitioners argued both cases should be transferred to Kolhapur, Maharashtra. The Court noted that the Jaipur proceedings were instituted based on the collecting bank's branch being located there, invoking jurisdiction under Section 142(2)(a) of the NI Act. The Calcutta case involved a loan transaction at Kolhapur. Without deciding on jurisdiction, the Court held that "it would serve the ends of justice if both the proceedings are continued at Jaipur." Accordingly, the Court "partly allow[ed] the Transfer Petition(s)," directing the Calcutta case to be transferred to Jaipur, while rejecting the transfer from Jaipur to Kolhapur. The Calcutta court was ordered to transmit records to the District Judge, Jaipur, who shall assign the matter to a competent court. Pending applications were disposed of.