Tuesday, 25 November 2014

Place of issue of a statutory notice cannot by itself confer territorial jurisdiction upon Court to take cognizance of an offence under section 138

Negotiable Instrument Act: Place of issue of a statutory notice cannot by itself confer territorial jurisdiction upon Court to take cognizance of an offence under section 138
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[2014] 49 taxmann.com 67 (SC)
SUPREME COURT OF INDIA
Sree Mahesh Stationaries
v.
Indiabulls Financial Services Ltd.
T.S. THAKUR AND C. NAGAPPAN, JJ.
TRANSFER PETITION (CRL.) NO. 403 OF 2013
AUGUST  5, 2014
Section 138 of the Negotiable Instruments Act, 1881 - Dishonour of cheque for insufficiency etc., of funds in account - Whether place issue of a statutory notice cannot by itself confer territorial jurisdiction upon Court to take cognizance of an offence under section 138 - Held, yes - Whether where cheque issued by petitioner was dishonoured at Bangalore, Courts of Gurgaon could not have jurisdiction to entertain complain simply because complainant-respondent had issued statutory notices relating to dishonour of cheque from Gurgaon - Held, yes [Paras 5 & 6]

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