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N.I.ACT sec 138

(Querist) 07 August 2008 This query is : Resolved 
if anyone takes a loan from any bank in delhi and if any cheque of EMI bounces or the person who had taken the loan is not repaying can the bank can lodge a case outside delhi on the pretext that the branch office or the head office is there so they can file the complaint there, is it not harrasment of consumer to face the trial in another city , moreover is there any judgement in relevance to this ?
V.Raghavan (Expert) 07 August 2008
The jurisdiction for filing the complain in NI Act sec 138 may be either at the address of the complainant, bankers place of the complainant or Accused, or at the Lawyer's address(complainant). In your case the registered office of the complainant may be somewhere out of Delhi and hence it may be filed outside of Delhi Court. There are incidents that the ICICI, City Bank, American Express lodged their complaints in New Delhi where as the accused in somewhere in the last portion of Tamil Nadu or Kerala and they forced them to appear before the court concerned after travelling nearly 2500 k.m. s for a meagre amount of Rs.1,500/- or 2000/-.
As u said such is an example for the harrassment and the friends in this Club may please be requested to post relevent judgement if any available not only of Satya but also for the benefit of the Club members
RAKHI BUDHIRAJA ADVOCATE (Expert) 07 August 2008
yes, the bank can file a complaint either within the jurisdiction of branch office or headoffice.
As per as the harassment of the consumer is concerned he himself is responsible 4 that.
For further quarry u can contact-
Srinivas.B.S.S.T (Expert) 07 August 2008
The jurisdiction areas mentioned by Sri. Raghavan are correct and courts in many cases has held them proper. If the accused has a valid reason he can seek transfer of the case by appraoching concerned court. But it is not so easy, the accused has to convince the court.
KANDE VENKATESH GUPTA (Expert) 07 August 2008
No. The bank cannot file case outside Delhi. The following courts are jurisdiction for trying the cases under the N.I.Act, They are;
(i) The place where the cheque was issued;
(ii)The place where the bank of the complainant is situated;
(iii)The place where the bank of the accused is situated,

Except the above three courts, no other court shall have territorial jurisdiction. Since the E.M.I, cheques are presented at the bank where the loan was sanctioned, the court where the bank which sanctioned the loan and presented the cheque will have got jurisdiction. Just because the bank had several branches, it cannot file cases wherever it likes. Even if it is filed, you can move concerned High Court or Supreme Court seeking transfer of the case pleading that only with an intention to harass you the case had been filed in another court. Because, the loan transaction is taken place at Delhi. Accused is residing at Delhi. It is conveneint place for all the parties i.e., the complainant, accused and witnesses for conducting trial. Since, the bank slips are need not be proved under the provisions of the N.I.Act.
H. S. Thukral (Expert) 08 August 2008
The complaint can also be filed at the place where notice for payment is issued.
K Bhaskaran v Sankaran
1999 AIR(SC)3762
V.Raghavan (Expert) 09 August 2008
Yes Mr.Harbhajan Thukral is right.The complaint may also be filed at the court's jurisdiction from where the legal notice is issued (that means the address of the Lawyer who send notice also to be taken care in consideration of the jurisdiction and filing of complain outside of these jusrisdiction can be challenged.
Sarvesh Kumar Sharma Advocate (Expert) 09 August 2008
satya, it is not harrasment of consumer to face the trial in another city when any court has jurisduction to make a trail of that case.the pretext that the branch office or the head office is the suficiant ground in n i act.
Sachin Bhatia (Expert) 08 October 2009
The bank can file a complaint either within the jurisdiction of branch office or headoffice.
Raj Kumar Makkad (Expert) 12 October 2009
Agreed with Raghavan.
Gulshan Tanwar (Expert) 01 May 2010

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