Supreme Court Moves Cheque Bounce Case from Gurgaon to Bangalore
Supreme Court Moves Cheque Bounce Case from Gurgaon to Bangalore
In a case called Sree Mahesh Stationaries & Anr. vs. Indiabulls Financial Services Ltd., decided in 2014, the Supreme Court of India made a key ruling.
The court allowed a criminal complaint about a bounced cheque to be shifted from a court in Gurgaon, Haryana, to a court in Bangalore, Karnataka.
This case was filed under Section 138 of the Negotiable Instruments Act, which deals with situations where a cheque is not paid by the bank (known as a “cheque bounce”).
Cheque Bounce Case from Gurgaon to Bangalore by Supreme Court of India
The Supreme Court of India recently decided to transfer a cheque bounce case involving Sree Mahesh Stationaries and Indiabulls Financial Services Ltd. from Gurgaon, Haryana, to Bangalore, Karnataka.
Background of the Case
Sree Mahesh Stationaries had taken a loan of ₹15 lakh from Indiabulls Financial Services Ltd. To repay this loan, they issued a cheque.
However, when the cheque was presented for payment, it was dishonored, leading Indiabulls to file a legal complaint under Section 138 of the Negotiable Instruments Act, commonly known as the “cheque bounce” law. This complaint was initially filed in a court in Gurgaon. Indian Kanoon
Legal Arguments
Points Raised by Sree Mahesh Stationaries (Petitioners):
The cheque was both issued and dishonored in Bangalore.
Any alleged offense occurred solely in Bangalore.
Sending legal notices from Gurgaon does not grant Gurgaon courts the authority to handle the case.
Points Raised by Indiabulls Financial Services Ltd. (Respondent):
The complaint was filed in Gurgaon because the legal notices were sent from there.
The cheque was presented for collection in Gurgaon.
Supreme Court’s Decision
After reviewing the arguments, the Supreme Court concluded that:
Jurisdiction Issue: Sending legal notices from a particular location does not grant courts in that location the authority to handle a cheque bounce case.
Location of Offense: The crucial factor is where the cheque was dishonored. In this case, both the issuance and dishonor of the cheque occurred in Bangalore.
Presentation of Cheque: Presenting the cheque in Gurgaon or sending notices from there does not establish jurisdiction for Gurgaon courts.
Based on these findings, the Supreme Court ordered that the case be transferred from the Judicial Magistrate, First Class, in Gurgaon to the Chief Metropolitan Magistrate in Bangalore.
Conclusion
This ruling emphasizes that in cheque bounce cases, the location where the cheque was dishonored is pivotal in determining which court has the authority to hear the case.
Simply sending legal notices or presenting the cheque in a different location does not confer jurisdiction to courts in that area.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific legal guidance, please consult a qualified lawyer.
