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TMI Blog2023 (2) TMI 884X X X X Extracts X X X X X X X X Extracts X X X X ..... ving the demand notice. However, jurisdiction to try this offence remained a troublesome issue for a long time. It may be noted that this Court exercised power under Section 406 Cr.P.C. in relation to offences under Section 138 of the Act of 1881 even during the time the original Section 142 held the field. In A.E. Premanand Vs. Escorts Finance Ltd. Others, this Court took note of the fact that the offences therein, under Section 138 of the Act of 1881, had arisen out of one single transaction and found it appropriate and in the interest of justice that all such cases should be tried in one Court. In the case on hand, as the six complaint cases pertain to the same transaction, it would be advisable to have a common adjudication to o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bject-matter of these complaint cases, were issued by the petitioners in connection with purchase of a NAWA-make crusher plant from the respondent company for a sum of ₹.1,88,80,000/-, under Agreement dated 04.06.2019. This sale consideration was to be paid in seven installments by way of cheques. The first cheque issued by the petitioners for a sum of ₹.11,80,000/- was duly honoured upon presentation by the respondent company. The remaining six cheques, however, were dishonoured on the strength of Stop payment instructions. The first two cheques that came to be dishonoured were presented by the respondent company through its bank at Nagpur, Maharashtra. The first two complaint cases were accordingly filed before the Courts at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Sankaran Vaidhyan Balan and another [(1999) 7 SCC 510], this Court held that an offence under Section 138 of the Act of 1881 has five components: (1) drawing of the cheque, (2) presentation of the cheque to the bank, (3) returning of the cheque unpaid by the drawee bank, (4) giving notice in writing to the drawer of the cheque demanding payment of the cheque amount, and (5) failure of the drawer to make payment within 15 days of the receipt of the notice. It was further held that the Courts having jurisdiction over the territorial limits wherein any of the five acts, that constitute the components of the offence, occurred would have the jurisdiction to deal with the case and if the five acts were done in five different area ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act of 1881 was renumbered as Section 142(1) when amendments were made in the Act of 1881 by the Negotiable Instruments (Amendment) Act, 2015 (Act 26 of 2015). Further, Section 142(2) was inserted in the statute book along with Section 142-A. The newly inserted Section 142(2), to the extent relevant, states that the offence under Section 138 shall be inquired into and tried only by a Court within whose local jurisdiction - (a) if the cheque is delivered for collection through an account, the branch of the bank where the payee or holder in due course, as the case may be, maintains the account, is situated. 10. This being the statutory scheme, stress is laid by Mr. Chirag M. Shroff, learned counsel, upon the words: shall be inquired ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Vs. Inderpal Singh [(2016) 2 SCC 75] affirmed the legal position obtaining after the amendment of the Act of 1881 and endorsed that Section 142(2)(a) of the Act of 1881 vests jurisdiction for initiating proceedings for an offence under Section 138 in the Court where the cheque is delivered for collection, i.e., through an account in the branch of the bank where the payee or holder in due course maintains an account. This Court also affirmed that Dashrath Rupsingh Rathod (supra) would not non-suit the company in so far as territorial jurisdiction for initiating proceedings under Section 138 of the Act of 1881 was concerned. 13. Therefore, institution of the first two complaint cases before the Courts at Nagpur is in keeping with the leg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the field. In A.E. Premanand Vs. Escorts Finance Ltd. Others [(2004) 13 SCC 527], this Court took note of the fact that the offences therein, under Section 138 of the Act of 1881, had arisen out of one single transaction and found it appropriate and in the interest of justice that all such cases should be tried in one Court. We, therefore, hold that, notwithstanding the non obstante clause in Section 142(1) of the Act of 1881, the power of this Court to transfer criminal cases under Section 406 Cr.P.C. remains intact in relation to offences under Section 138 of the Act of 1881, if it is found expedient for the ends of justice. 14. In the case on hand, as the six complaint cases pertain to the same transaction, it would be advisable to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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