M/S BRIDGESTONE INDIAPVT. LTD versus INDERPAL SINGH

M/S BRIDGESTONE INDIAPVT. LTD versus INDERPAL SINGH

Under the amended Section 142(2)(a) and Section 142A of the Negotiable Instruments Act, 1881, the territorial jurisdiction lies in the court where the cheque is delivered for collection (the bank branch of the payee/holder), and provisions of the Code of Criminal Procedure or previous judgments, such as Dashrath Rupsingh Rathod v. State of Maharashtra, are overridden by the non-obstante clause.

Parties
Appellant: M/S Bridgestone India Pvt. Ltd.; Respondent: Inderpal Singh
Jurisdiction
India
Judgment Date
24 November 2015
Procedural Posture
Criminal Appeal / Final Supreme Court Disposition
Outcome
Appeals allowed; impugned order of High Court set aside.
Legal Topics
Negotiable Instruments, Territorial Jurisdiction, Dishonor of Cheque
Criminal Law Negotiable Instruments Territorial Jurisdiction Dishonor of Cheque

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Parties

M/S Bridgestone India Pvt. Ltd.

Appellant

Inderpal Singh

Respondent

Procedural Posture

Criminal Appeal / Final Supreme Court Disposition

Legal Issues

  1. 1 Whether the Judicial Magistrate, Indore, has territorial jurisdiction to try proceedings under Section 138 of the Negotiable Instruments Act for a cheque presented at Indore branch.
  2. 2 Whether the amendments to Sections 142 and 142A of the Negotiable Instruments Act override previous decisions and criminal procedure code provisions regarding jurisdiction.

Ratio Decidendi

Under the amended Section 142(2)(a) and Section 142A of the Negotiable Instruments Act, 1881, the territorial jurisdiction lies in the court where the cheque is delivered for collection (the bank branch of the payee/holder), and provisions of the Code of Criminal Procedure or previous judgments, such as Dashrath Rupsingh Rathod v. State of Maharashtra, are overridden by the non-obstante clause.

Court Disposition

Appeals allowed; impugned order of High Court set aside.

Orders

  • Impugned order dated 05.05.2011 of High Court of Madhya Pradesh, Indore Bench, set aside.
  • Parties directed to appear before Judicial Magistrate, First Class, Indore, on 15.01.2016.