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Jurisdiction of Courts with regard to Cheque-Bounce Cases The jurisdiction of filing cheque bounce cases under Section 138
ramsingh | 04 Nov 2015

A Cheque bounce case under Section 138 of the Negotiable Instrument Act will be filed only where the payee / complainant has his bank account and the territorial jurisdiction of the court will be covered by the branch of the bank where it is located.

Jurisdiction of Courts with regard to Cheque-Bounce Cases The jurisdiction of filing cheque bounce cases under Section 138 of the Negotiable Instrument Act is now covered by the provisions of the new Ordinance promulgated by the Parliament with effect from 15.06.2015 which are as follows:

1. A Cheque bounce case under Section 138 of the Negotiable Instrument Act will be filed only where the payee / complainant has his bank account and the territorial jurisdiction of the court will be covered by the branch of the bank where it is located. As for instance, if a person is in Delhi and he has an account in a bank a particular place in Delhi / New Delhi. The person receives a cheque from a person in Chandigarh. The person presents the Cheque in Delhi / New Delhi in the bank where the person has his account. Thereafter if the cheque is bounced, then the case of cheque bounce will be filed only in Delhi / New Delhi in the particular Hon'ble Court which has the territorial jurisdiction over that place where the person's bank is situated.

 

2. If the person has filed a case of cheque bounce in a court before the Hon'ble Court in the above-said manner, thereafter if second cheque of the same person / client (drawer) which has previously bounced, thereafter all the subsequent case of cheque bounce against the same person / client / drawer has to be filed before the same Hon'ble Court. This will guarantee the fact that the drawer of the cheque is not troubled by the several case of cheque bounce against him at other areas / cities. The crux of the above-said provision is that case of Cheque bounce under Section 138 of the Negotiable Instrument Act will be filed only in one Court notwithstanding the fact that the cheque is presented in different areas in different banks. If for instance, the payee / complainant has presented the cheque of the drawer in his bank located in Hauz Khas Branch in Delhi, then all the subsequent cheque of the same drawer / person has to be present in the same branch of his bank i.e., the same bank located in Hauz Khas Branch, Delhi. 

 

3. All the matters with regard to Dishonour of Cheques which are pendent lite / pending adjudication as on the date of 15-06-2015 Before the Hon'bl Courts in India will be moved / transferred to the Hon'ble court which has territorial jurisdiction to try the matter as afore-mentioned, meaning to say, the matters / cases of Cheque Bounce cases will be sent / transferred to the Hon'ble Court which has territorial jurisdiction at the area in which the bank of the payee / complainant is situated. So, where there has been multiple litigations between the same parties as on date 15.06.2015 then the matters will be sent / transferred before the Hon'ble Court which had jurisdiction where the first case / matter had Jurisdiction. If for Instance, the complainant / payee has several cases against the drawer of the case instituted in different Courts in India, i.e., one case of S.138 Cheque Bounce is pending Adjudication in Saket Courts , New Delhi instituted in the year 2010, another case of Cheque Bounce had been instituted against the same drawer in the year 2011 in Tis Hazari Courts, Delhi, another case of Cheque Bounce had been instituted against the same drawer in the year 2012 in Dwarka Courts, Delhi, another case of Cheque Bounce had been instituted against the same drawer in the year 2013 in Patiala House Courts, Delhi, another case of Cheque Bounce had been instituted against the same drawer in the year 2014 in Rohini Courts, Delhi, another case of Cheque Bounce had been instituted against the same drawer in the year 2015 in Karkardooma Courts, New Delhi, and all the above-said cases are pending adjudication, then Saket Courts will have the jurisdiction to try and adjudicate all the above-said matters since the First case of Cheque Bounce was firstly instituted in Saket Courts, Delhi.