Section 138 NI Act: Mere mention of the word encashment in the complaint does not change jurisdictional area [Read the Order]

Justice Sanjeev Kumar in the case titled as Shafeeq Ahmad Qadri vs Cemtac Cements Pvt Ltd on 25.10.2019 has rejected the challenge made by the accused on the ground of jurisdiction in a cheque bounce case.

Jammu & Kashmir High Court has observed and held as under:

"From the plain reading of clause (a) and (b) of Section 142(2) of the Act, it is evident that if the cheque is delivered for collection through an account, the location of the branch of the bank where the payee or holder in due course maintains the account, would determine jurisdiction of the court to inquire into and try the offence under Section 138 of the Act.

However, if the cheque is presented for payment by the payee or holder in due course, otherwise through an account, the location of branch of the drawee bank where the drawer maintains his account would determine jurisdiction of the court.

From the perusal of the complaint and the averments made therein in its entirety, it is abundantly clear that the petitioner has presented the cheques for collection in his account maintained with J&K Bank Poloview Srinagar and, therefore, in terms of clause (a) of Section 142(2) of the Act it is the court at Srinagar which alone has the jurisdiction to inquire into and try the offence under Section 138 of the Act.

Mere mention of the word encashment alongwith collection in para 3 of the complaint does not change the complexion of the case in any manner.

The respondent/complainant has clearly stated that he had delivered the cheque to his Bank at Poloview for collection through his account and that being the position it is the court at Srinagar which alone has the jurisdiction to inquire into and try the complaint under Section 138 of the Act.

The plea of the petitioner that the courts at Srinagar had no jurisdiction to try the complaint and that clause (b) of Sub Section (2) of Section 142 of the Act was attracted, is without any substance.

The learned trial Magistrate has correctly appreciated the facts and law involved in the matter and has come to the right conclusion that his court has the jurisdiction to entertain the complaint under Section 138 of the Act and try the same".

Read the Order here:

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