DEVENDRA KISHANLAL DAGALIA versus DWARKESH DIAMONDS PVT. LTD. AND ORS.

DEVENDRA KISHANLAL DAGALIA versus DWARKESH DIAMONDS PVT. LTD. AND ORS.

Once a Magistrate has taken cognizance of an offence and issued summons under Section 204 Cr.P.C., they lack jurisdiction to recall or review the order by exercising power under Section 201 Cr.P.C.; remedy lies with the High Court. A complaint under Section 138 of the Negotiable Instruments Act is maintainable at a location where any of the five ingredients of the offence occurred, so the Mumbai court had jurisdiction as at least one act occurred there.

Parties
Appellant: Devendra Kishanlal Dagalia; Respondents: Dwarkesh Diamonds Pvt. Ltd. and Ors.
Jurisdiction
India
Judgment Date
25 November 2013
Procedural Posture
Criminal Appeal / Appeal From High Court Judgment Setting Aside Sessions Judge Order, Supreme Court Decision
Outcome
Appeals allowed; High Court order set aside, Sessions Judge's order affirmed.
Legal Topics
Jurisdiction of Magistrate in Negotiable Instruments Act Cases, Power of Magistrate to Recall Process, Territorial Jurisdiction Under Section 138 NI Act
Criminal Law Negotiable Instruments Jurisdiction of Magistrate in Negotiable Instruments Act Cases Power of Magistrate to Recall Process Territorial Jurisdiction Under Section 138 NI Act

Case Brief

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Parties

Devendra Kishanlal Dagalia

Appellant

Dwarkesh Diamonds Pvt. Ltd. and Ors.

Respondents

Procedural Posture

Criminal Appeal / Appeal From High Court Judgment Setting Aside Sessions Judge Order, Supreme Court Decision

Legal Issues

  1. 1 Whether Magistrate has jurisdiction to recall or review summons issued under Section 204 Cr.P.C. by exercising power under Section 201 Cr.P.C.
  2. 2 Whether complaint under Section 138 of the Negotiable Instruments Act, 1881 was maintainable at Mumbai given business dealings, supply, handing over of cheques and legal notice at Mumbai

Ratio Decidendi

Once a Magistrate has taken cognizance of an offence and issued summons under Section 204 Cr.P.C., they lack jurisdiction to recall or review the order by exercising power under Section 201 Cr.P.C.; remedy lies with the High Court. A complaint under Section 138 of the Negotiable Instruments Act is maintainable at a location where any of the five ingredients of the offence occurred, so the Mumbai court had jurisdiction as at least one act occurred there.

Court Disposition

Appeals allowed; High Court order set aside, Sessions Judge's order affirmed.

Orders

  • Order dated 6th December, 2012 of High Court set aside.
  • Sessions Judge's order restored.