SREE MAHESH STATIONARIES & ANR. versus INDIABULLS FINANCIAL SERVICES. LTD.

SREE MAHESH STATIONARIES & ANR. versus INDIABULLS FINANCIAL SERVICES. LTD.

Issue of statutory notice from Gurgaon or presentation of cheque at Gurgaon does not confer jurisdiction to Gurgaon courts under Section 138 of the Negotiable Instruments Act; jurisdiction rests with the court where the drawee bank is situated, i.e., Bangalore.

Parties
Petitioner: Sree Mahesh Stationaries; Respondent: Indiabulls Financial Services Ltd.
Jurisdiction
India
Judgment Date
05 August 2014
Procedural Posture
Transfer Petition (criminal) No. 403 of 2013 / Final Disposition
Outcome
Petition allowed; Complaint transferred
Legal Topics
Jurisdiction, Dishonour of Cheque, Negotiable Instruments Act S.138, Transfer of Complaint
Criminal Law Banking Law Jurisdiction Dishonour of Cheque Negotiable Instruments Act S.138 Transfer of Complaint

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Parties

Sree Mahesh Stationaries

Petitioner

Indiabulls Financial Services Ltd.

Respondent

Procedural Posture

Transfer Petition (criminal) No. 403 of 2013 / Final Disposition

Legal Issues

  1. 1 Whether the Courts at Gurgaon have jurisdiction to try the complaint under Section 138 of the Negotiable Instruments Act when the cheque was drawn and dishonoured at Bangalore
  2. 2 Whether the issuance of statutory notice from Gurgaon or presentation of the cheque for collection at Gurgaon confers jurisdiction on the Gurgaon court

Ratio Decidendi

Issue of statutory notice from Gurgaon or presentation of cheque at Gurgaon does not confer jurisdiction to Gurgaon courts under Section 138 of the Negotiable Instruments Act; jurisdiction rests with the court where the drawee bank is situated, i.e., Bangalore.

Court Disposition

Petition allowed; Complaint transferred

Orders

  • Criminal Complaint No.14089 of 2009 transferred from Judicial Magistrate, First Class, Gurgaon, Haryana to Chief Metropolitan Magistrate, Bangalore, who shall try the case himself or transfer to any other competent court.
  • No costs.