Supreme Court

M/s Bridgestone India Pvt. Ltd. v. Inderpal Singh

24.11.2015

Banking

Jurisdiction vested where cheque delivered for collection

The Supreme Court accepted the explanation that pursuant to the Negotiable Instruments (Amendment) Second Ordinance, 2015, “the place where a cheque is delivered for collection, i.e. the branch of the bank of the payee or holder…where the drawee maintains an account, would be determinative of the place of territorial jurisdiction.” It noted that on the issue of jurisdiction, Section 142A of the Negotiable Instruments Act, 1881 would take precedence over the Code of Criminal Procedure. It distinguished a previous ruling in Dashrath Rupsingh Rathod v. State of Maharashtra which would have impeded territorial jurisdiction for initiating proceedings in the instant case.

Relevant

Dashrath Rupsingh Rathod v. State of Maharashtra MANU/SC/0655/2014

Tags : Dishonoured cheque jurisdiction collection drawee

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