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2015 (12) TMI 777 - SUPREME COURT OF INDIA

2015 (12) TMI 777 - SUPREME COURT OF INDIA - TMI - Jurisdiction under sub-section (2) of section 142 Negotiable Instruments Act - Held 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 ba .....

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nion 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 .....

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ellant has been returned, it shall be re-presented before the Judicial Magistrate, First Class, Indore, Madhya Pradesh, on the date of appearance indicated hereinabove. - CRIMINAL APPEAL No.1557, 1562, 1563, 1564 OF 2015, (Arising out of SLP(Crl.)No.7850, 9758, 10019, 10020 of 2011) - Dated:- 24-11-2015 - JAGDISH SINGH KHEHAR AND R. BANUMATHI, JJ. For The Petitioner : Mr.Wills Mathews, Adv., Mr.M.P.Upadhyay, Adv., Mr.Ginesh P., Adv., Mr.Devendra Kumar Tiwari, Adv. and Mr. P. George Giri, Adv. Fo .....

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ndia Pvt.Ltd. presented the above cheque at the IDBI Bank in Indore. The appellant received intimation of its being dishonoured on account of …exceeds arrangement… on 04.08.2006 at Indore. 4. The appellant issued a legal notice on 26.08.2006, which was served on the respondent - Inderpal Singh on 06.09.2006, demanding the amount depicted in the cheque. The appellant informed the respondent, that he would be compelled to initiate proceedings under Section 138 of the Negotiable Instr .....

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ts Act, 1881. 6. The accused-respondent - Inderpal Singh, preferred an application before the Judicial Magistrate, First Class, Indore, Madhya Pradesh, under Section 177 of the Criminal Procedure Code, contesting the territorial jurisdiction with respect to the above cheque drawn on the Union Bank of India, Chandigarh. The prayer made by the respondent, that the Judicial Magistrate, First Class, Indore, did not have the jurisdiction to entertain the proceedings initiated by the appellant - M/s B .....

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Pradesh before its Indore Bench. Having examined the controversy in hand and keeping in mind the fact, that a number of documents were presented by the respondent - Inderpal Singh during the course of hearing before the High Court, by an order dated 03.12.2009, the petition filed by the accused-respondent was disposed of, by remitting the case to the Judicial Magistrate, First Class, Indore, requiring him to pass a fresh order after taking into consideration the additional documents relied upon, .....

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n 482 of the Criminal Procedure Code, in the High Court of Madhya Pradesh before its Indore Bench. The High Court accepted the prayer made by the accused-respondent - Inderpal Singh by holding, that the jurisdiction lay only before the Court wherein the original drawee bank was located, namely, at Chandigarh, where-from the accused-respondent had issued the concerned cheque bearing No.1950, drawn on the Union Bank of India, Chandigarh. 8. Dissatisfied with the order passed by the High Court of M .....

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iable Instruments Act, 1881 is committed no sooner a cheque drawn by the accused on an account being maintained by him in a bank for discharge of debt/liability is returned unpaid for insufficiency of funds or for the reason that the amount exceeds the arrangement made with the bank. 58.2 Cognizance of any such offence is however forbidden under Section 142 of the Act except upon a complaint in writing made by the payee or holder of the cheque in due course within a period of one month from the .....

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(c) If the drawer has failed to pay the cheque amount within fifteen days of receipt of such notice. 58.4 The facts constituting cause of action do not constitute the ingredients of the offence under Section 138 of the Act. 58.5 The proviso to Section 138 simply postpones/defers institution of criminal proceedings and taking of cognizance by the court till such time cause of action in terms of clause (c) of proviso accrues to the complainant. 58.6 Once the cause of action accrues to the complain .....

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ection 138 is committed along with other offences in a single transaction within the meaning of Section 220(1) read with Section 184 of the Code of Criminal Procedure or is covered by the provisions of Section 182(1) read with Sections 184 and 220 thereof. In view of the decision rendered by this Court in Dashrath Rupsingh Rathod s case, it is apparent, that the impugned order dated 05.05.2011, passed by the High Court of Madhya Pradesh, Bench at Indore, was wholly justified. 10. In order to ove .....

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. Our attention was then invited to Section 3 thereof, whereby, the original Section 142 of the Negotiable Instruments Act, 1881, came to be amended, and also, Section 4 thereof, whereby, Section 142A was inserted into the Negotiable Instruments Act. Sections 3 and 4 of the Negotiable Instruments (Amendment) Second Ordinance, 2015 are being extracted hereunder: 3. In the principal Act, section 142 shall be numbered as sub-section (1) thereof and after sub-section (1) as so numbered, the followin .....

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awer maintains the account, is situated. Explanation - For the purposes of clause (a), where a cheque is delivered 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 delivered to the branch of the bank in which the payee or holder in due course, as the case may be, maintains the account. 4. In the principal Act, after section 142, the following section shall be inserted, namely:- 142A. (1) Notwithstanding anything containe .....

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or the holder in due course, as the case may be, has filed a complaint against the drawer of a cheque in the court having jurisdiction under sub-section (2) of section 142 or the case has been transferred to that court under sub-section (1), and such complaint is pending in that court, all subsequent complaints arising out of section 138 against the same drawer shall be filed before the same court irrespective of whether those cheques were delivered for collection or presented for payment within .....

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nance, 2015, before which the first case was filed and is pending, as if that sub-section had been in force at all material times. (Emphasis is ours) A perusal of the amended Section 142(2), extracted above, leaves no room for any doubt, specially in view of the explanation thereunder, that with reference to an offence under Section 138 of the Negotiable Instruments Act, 1881, the place where a cheque is delivered for collection i.e. the branch of the bank of the payee or holder in due course, w .....

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Negotiable Instruments Act. A perusal of Sub-section (1) thereof leaves no room for any doubt, that insofar as the offence under Section 138 of the Negotiable Instruments Act is concerned, on the issue of jurisdiction, the provisions of the Code of Criminal Procedure, 1973, would have to give way to the provisions of the instant enactment on account of the non-obstante clause in sub-section (1) of Section 142A. Likewise, any judgment, decree, order or direction issued by a Court would have no e .....

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gh 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). We are also satisfied, based on Section 142A(1) to the effect, that the judgment rendered by this Court in D .....

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