jurisdiction for 138 NI Act

vinod bansal (Querist) 26 August 2010 This query is : Resolved
R/Experts
Complainant is residing at Karnal and accused give him a cheque at Delhi.Later on complainant deposited the cheque in his account at karnal which was sent to accused bank icici karnal,accused a/c is in icici Delhi branch.Icici Karnal after online clearance system return the same to the banker of complainant at karnal due to insufficient funds.Can i send a notice from karnal or i have to file complaint at Delhi bcoz accused is residing permanent resident of Delhi further cheque was given at Delhi.Kindly help.Thanks

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H. S. Thukral (Expert) 26 August 2010
You can file a complaint in Karnal.

Devajyoti Barman (Expert) 26 August 2010
Yes court at Karnal has got jurisdiction.

Krishnamurthy Ramdas Iyer (Expert) 26 August 2010
As 'cause of action' that is Dishonour of Chq. is at karnal.Hence suit to be filed in karnal

Rajeev kulshreshtha (Expert) 26 August 2010
The Karnal court has jurisdiction to entertainment the complaint u/s 138 NI Act.

vinod bansal (Querist) 26 August 2010
Thanx to all r/experts

s.subramanian (Expert) 26 August 2010
Yes. You can do it in Karnal.

DEFENSE ADVOCATE.-firmaction@g (Expert) 27 August 2010
If the accused can plead and prove that transections were done at Delhi and you have put it at Karnal to harrass him the complainant may be dismissed at karnal and you may be given opportunity to file it again at Delhi.

H. S. Thukral (Expert) 27 August 2010
Since Vinod Bansal is an Adv. I would like to discuss the issue little more .

In K Bhaskaran case the SC while interpreting the jurisdiction of court in the matter of 138 NI Act and provisions of CR.PC held that the cause of action arises (1) Drawing of the cheque,
(2) Presentation of the cheque to the bank, (3) Returning the cheque unpaid by the drawee bank,
(4) Giving notice in writing to the drawer of the cheque demanding payment of the cheque amount,
(5) failure of the drawer to make payment within 15 days of the receipt of the notice. It was opined that if five different acts were done in five different localities, any one of the courts exercising jurisdiction in one of the five local areas can become the place of trial for the offence under Section 138 of the Act and the complainant would be at liberty to file a complaint petition at any of those.
In terms of the above judgment the financial institutions started exploiting the debtors by issuing notice from the head offices or other offices which were located far from the places of the accused persons.
In Herman Electronics case, the SC reinterpreted the 'Notice' mentioned in the clause and confirming earlier view held that that the notice is delivered which is accomplishment of issuance of notice, when it is received by the accused at the place of his business. Therefore the place of receiving the notice and not the place of giving the notice is relevant.
So complaint can be filed at any of the five places.
Since the cheque is returned unpaid at Karnal, you can file a complaint at that place too.