SUKUversusJAGDISH & ANR.
- Citation
- 2014 INSC 598
- Decided
- 4 September 2014
- Disposal
- Dismissed
- Bench
- T S THAKUR
Holding
Presentation of a cheque or issuance of notice alone does not confer jurisdiction on the court where such presentation or notice occurs for offences under Section 138 of the Negotiable Instruments Act.
Summary
The complainant presented a cheque, issued by the accused on a Karnataka bank, for collection at a Kerala bank and filed a complaint under Section 138 of the Negotiable Instruments Act. The question before the Supreme Court was whether the mere presentation of the cheque in Kerala, or the issuance of a notice demanding payment, conferred territorial jurisdiction on Kerala courts to try the offence. The Court examined earlier precedents, particularly Harman Electronics and Dashrath Rupsingh Rathod, and held that presentation of a cheque or issuance of notice alone does not create a cause of action that confers jurisdiction on the court where such act occurs. Consequently, the High Court’s order that the Kerala court lacked jurisdiction was affirmed. The appeals were dismissed without any order as to costs.
Issues considered
- Does the presentation of a cheque in a bank located in a different state confer territorial jurisdiction on the courts of that state to entertain a complaint under Section 138 of the Negotiable Instruments Act?
- Does the issuance of a notice to the drawer of a cheque create a cause of action that confers jurisdiction on the court where the notice is issued?
Legislation cited
Subjects
Judgment
[2014) 9 S.C.R. 522
A SUKU
v.
JAGDISH & ANR.
(Criminal Appeal No. 1917 of 2014)
SEPTEMBER 4, 2014
B
[T.S. THAKUR, V. GOPALA GOWDA AND
C. NAGAPPAN, JJ.]
Negotiable Instruments Act, 1881 - s. 138 - Complaint
C under, for dishonour of cheque - Territorial jurisdiction upon
the courts to take cognizance where cheque was presented
or notice issued - Held: Presentation of a cheque by the
complainant at a place of his choice or issue of notice by him
to the accused demanding' payment of the cheque amount
D not sufficient by themselves to confer jurisdiction upon tfle
courts - Thus, order passed by the High Court that tf:le
presentation of the cheque to a bank in Kera/a would n9t by
itself confer jurisdiction on the Kera/a Court, does not call for
interference.
E
The question which arose for consideration before
this Court was whether the presentation of cheque by
the complainant in a bank, having branch in Kerala
conferred jurisdiction upon the courts at Kerala to
entertain a complaint u/s.138 of the Negotiable
F Instruments Act, 1881 and try the aecused persons for the
offence when the cheque was issued by the respondent
on the bank, having branch in Karnataka.
The Magistrate held that the court at Kerala had no
G territorial jurisdiction to entertain the same. The High
- Court relying upon the decision of this Court in *Harman
Electronics Private Limited that the issue of notice to the
drawer of the cheque does not by itself give rise to a
cause of action to confer jurisdiction upon the courts to
H 522
SUKU v. JAGDISH 523
take cognizance, held that the presentation of the cheque A
to a bank in Kerala would not by itself confer jurisdiction
on the Kerala Court.
Dismissing the appeals, the Court
HELD: The view taken by the Magistrate based as it B
is on the decision of this Court in *Harman Electronics
Private Limited does not, call for any interference by this
Court, in the light o·f the pronouncement of this Court in
** Dashrath Rupsingh Rathod where this Court has held
that presentation of a cheque by the complainant at a C
place of his choice or issue of notice by him to the
accused demanding payment of the cheque amount are
not sufficient by themselves to confer jurisdiction upon
the courts where such cheque was presented or notice
issued. The order passed by the High Court is upheld. D
[Para 4] [525-B-D]
*Harman Electronics Private Limited and Anr. v. National
Panasonic India Private Limited 2008 (17) SCR 487: (2009)
1 SCC 720; **Dashrath Rupsingh Rathod v. State of E
Maharashtra and Anr. (2014) 9 SCALE 97 - referred to.
Case Law Reference :
2008 (17) SCR 487 Referred to Para 3, 4
(2014) 9 SCALE 97 Relied on Para 4 F.
CRIMINAL APPELLATE JURISDICTION : Criminal Appeal
No. 1917 of
2014.
From the Judgment and Order dated 15.06.2011 in Crl.
M.C. No. 514 of 2011 of the High Court of Kerala at Emakulam. G
WITH
Criminal Appeal No. 1918 of 2014.
H
524 SUPREME COURT REPORTS [2014] 9 S.C.~.
A Vinay Kumar Shailendra, (In Person), Subhro Sanyal,
Worthing Kasar, Vaibhav Rai Asithana, K.R. Sasiprabhu,'E.C.
Agrawal, Puja Sharma, Liz Mathew, K. Datta, Manish
Srivastava, Rahul Malhotra, Praveen Agrawal for the Appellant.
B Annam D.N. Rao, A. Venketesh, Sudipto Sircar, Neelam
Jain, Vaishali R., Shailender Bhardwaj, Subramonium Prasad,
Anil Katiyar for the Respondents.
The Judgment of the Court was delivered by
c T.S. THAKUR, J. 1. Leave granted.
2. These appeals arise out of an order dated 15th June,
2011 passed by the High Court of Kerala at Ernakulam
whereby the High Court has held that the presentation of a
cheque by the complainant in a bank at Krishnapuram,
D Kayamkulam, Kerala did not confer jurisdiction upon Courts at
Kayamkulam to entertain a complaint under Section 138 of the
Negotiable Instruments Act and try the accused persons for the
offence.
E 3. It is not in dispute that the cheque in question was
issued by the respondent on Syndicate Bank, Gokaran branch
in Karnataka which was presented for collection by the
complainant at Krishnapuram, Kayamkulam, Kerala but
dishonoured for insufficiency of funds. The complainant then
F filed complaint at Kayamkulam in the State of Kerala which
were returned by the Magistrate to be filed before the proper
Court as the Court at Kayamkulam, Kerala, had no territorial
jurisdiction to entertain the same. The matter was taken up
before the High Court by the complainants in Crl. M.C. Nos.514
G of 2011 and 1653 of 2011 which the High Court has dismissed
by the impugned order holding that the presentation of the
cheque to a Bank in Kerala would not by itself confer jurisdiction
upon the Kerala Court. The High Court has in support of that
view relied upon the decision of this Court in Harman
. H Electronics Private Limited and Anr. v. National Panasonic
SUKU v. JAGDISH [T.S. THAKUR, J.] 525
India Private Limited (2009) 1 SCC 720 where this Court held A
that the issue of notice to the drawer of the cheque does not
by itself give rise to a cause cif action to confer jurisdiction upon
the Court to take cognizance.
4. The view taken by the Magistrate based as it is on the 8
decision of this_ Court in Harman'.s_case (supra) does not, in
our opinion, call for any interference by this Court, in the light
of the pronouncement of this Court in Dashrath Rupsingh
Rathod v. State of Maharashtra and Another (2014) 9 SCALE
97 where this Court has examined the issue at some length and
held that presentation of a cheque by the complainant at Ii place C
of his choice or issue of notice by him to the accused
demanding payment of the cheque amount are not sufficient by
themselves to confer jurisdiction upon the courts where such
cheque was presented or notice issued. Following the decision
in Dashrath Rupsingh Rathod's case (supra), we affirm the D
order passed by the High Court.
5. These appeals accordingly fail and are, hereby,
·dismissed but in the circumstances without any orders as to
costs. E
Nidhi Jain Appeals dismissed.
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