M/S. HARMAN ELECTRONICS (P) LTD. & ANR. versus M/S. NATIONAL PANASONIC INDIA LTD.

M/S. HARMAN ELECTRONICS (P) LTD. & ANR. versus M/S. NATIONAL PANASONIC INDIA LTD.

For Section 138 NI Act offences, territorial jurisdiction is determined by the place where the offence is completed, which includes the service of statutory notice and failure to pay within 15 days; mere issuance of notice from Delhi is not sufficient to confer jurisdiction if all material acts occurred at Chandigarh; jurisdiction cannot be conferred by action or omission of parties but only by cause of action as per CrPC. Thus, the Delhi court lacked jurisdiction, complaint must be heard at Chandigarh where offence occurred.

Parties
Appellant: M/S. Harman Electronics (P) Ltd.; Respondent: M/S. National Panasonic India Ltd.
Jurisdiction
India
Judgment Date
12 December 2008
Procedural Posture
Criminal Appeal / Appeal From Order of High Court of Delhi in Criminal Miscellaneous Petition
Outcome
Appeal allowed
Legal Topics
Territorial Jurisdiction, Negotiable Instruments, Dishonour of Cheque
Criminal Law Banking Law Territorial Jurisdiction Negotiable Instruments Dishonour of Cheque

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Parties

M/S. Harman Electronics (P) Ltd.

Appellant

M/S. National Panasonic India Ltd.

Respondent

Procedural Posture

Criminal Appeal / Appeal From Order of High Court of Delhi in Criminal Miscellaneous Petition

Legal Issues

  1. 1 What is the territorial jurisdiction of a court to try an offence under Section 138 of the Negotiable Instruments Act, 1881?

Ratio Decidendi

For Section 138 NI Act offences, territorial jurisdiction is determined by the place where the offence is completed, which includes the service of statutory notice and failure to pay within 15 days; mere issuance of notice from Delhi is not sufficient to confer jurisdiction if all material acts occurred at Chandigarh; jurisdiction cannot be conferred by action or omission of parties but only by cause of action as per CrPC. Thus, the Delhi court lacked jurisdiction, complaint must be heard at Chandigarh where offence occurred.

Court Disposition

Appeal allowed

Orders

  • Complaint case pending in New Delhi transferred to competent court at Chandigarh.
  • Transferee court to dispose of matter within six months from receipt of records; no adjournments when complainant and witnesses are present.