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Ramesh Chander (Advocate)     24 August 2014

Section 138 n.i. act

In a recent judgment on S. 138 NI Act, Hon'ble Apex Court has held that complaint U/s 138 of NI Act can be filed only at the place of dishonor of cheque. Today almost all banks have CBS branches, cheques are payable at par at all branches of paying bank in India. If a drawer has base account in "A" bank at Delhi, he issues a cheque payable at par at all branches of "A" bank, payee presented this cheque before Mumbai branch of paying bank where it was dishonored, the cheque was not sent to Delhi branch of paying bank, it was dishonored at Mumbai branch itself for both the branches being CBS branches. Whether the payee can file complaint U/s 138 of  NI Act at Delhi or Mumbai? Remember that the cheque was dishonored at Mumbai wheeras the drawer has his account with Delhi branch of the bank.


 5 Replies

Chetan Joshi (Advisory/Advocacy)     25 August 2014

I would not answer that upfront but would like you to read:



The Judgement


You will learn things beyond your question.



Chetan Joshi

Mallikarjuna Rao Tata (Advocate)     25 August 2014

you have to read the Judgement Passed by Our Supreme Court on 1st August, 2014  

Dishonour of Cheque  -- Territorial Jurisdiction


R Trivedi (     25 August 2014

Actually this is an obvious doubt in the era of digital Banking.


What can be deduced from the SC order is that "the Branch where the accused maintains his account".


Please note that this address is written on all the cheques.

Ajit Singh Cheema (practising Advocate)     25 August 2014

dear mr. Chetan Joshi ,

we shall feel highly obliged if you kindly place the Article reffered on the shared files, or in the alternative kindly give the reference of the article published .A copy of the judgement is not required as the same is readily available.

T. Kalaiselvan, Advocate (Advocate)     30 August 2014

The fact is that the account is held at Delhi, the Mumbai bank has dishonored the cheque on behalf of the Delhi bank only,hence the settled law is very clear about it.

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