LexSREE MAHESH STATIONARIES & ANR. versus INDIABULLS FINANCIAL SERVICES. LTD.
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[2014] 8 S.C.R. 375 SREE MAHESH STATIONARIES & ANR. v .. INDIABULLS FINANCIAL SERVICES. LTD. (Transfer Petition (CRL.) No.403 of 2013) AUGUST 5, 2014 [T.S. THAKUR AND C. NAGAPPAN, JJ.] A B Negotiable Instruments Act, 1881 - s. 138 - Dishonour of cheque - Transfer of complaint - Petitioner borrowed loan from respondent-company - Cheque issued in partial repayment C of the loan amount and drawn on Bank in Bangalore, when presented for encashment to Bank in Gurgaon was dishonoured - Complaint under s. 138 of the 1881 Act - Magistrate at Gurgaon took cognizance and summoned the petitioners for appearance to face the trial - Transfer petition D uls.406 CrPC seeking transfer of the complaint from Gurgaon to the competent Court at Bangalore - Held: The only reason the complainant claimed jurisdiction for the Courts at Gurgaon was that the complainant-respondent had issued the statutory notices relating to dishonour of the cheque from Gurgaon - E However, issue of statutory notice cannot by itself confer jurisdiction upon the Court to take cognizance of offence u/s. 138 of the 1881 Act - The complainant a/so tried to justify jurisdiction for the Court at Gurgaon on the ground that the cheque was presented for collection there, however, such plea not tenable -On either ground, the Courts in Gurgaon could F not assume jurisdiction - Complaint in question accordingly transferred from the Court of Judicial Magistrate at Gurgaon, Haryana to the Court of competent jurisdiction of Chief Metropolitan Magistrate at Bangalore - Code of Criminal G Procedure, 1973 - s.406 - Transfer Petition. The petitioner borrowed loan of Rs.15,00,0001- (Rupees Fifteen Lakh) for business purposes from 375 H 376 SUPREME COURT REPORTS [2014] 8 S.C.R. A respondent-company. A cheque allegedly issued in partial repayment of the loan amount and drawn on the Syndicate Bank, City Market Branch, Bangalore, when presented for encashment to ING Vysya Bank, Gurgaon was dishonoured resulting in the issue of statutory B notices to the petitioners and eventual filing of a complaint before the Judicial Magistrate, First Class at Gurgaon under Section 138 of The Negotiable Instruments Act, 1881. The Magistrate took cognizance and summoned the petitioners for appearance to face the C trial. Petitioners filed the present transfer petition under Section 406 CrPC seeking transfer of the complaint afore- mentioned from Gurgaon to the competent Court at Bangalore. D Allowing the petition, the Court HELD:1.1. The only ceason the complainant claims jurisdiction for the Courts at Gurgaon is the fact that the complainant-respondent had issued the statutory notices relating to the dishonour of the cheque from Gurgaon. E However, issue of a statutory notice cannot by itself confer jurisdiction upon the Court to take cognizance of an offence under Section 138 of the Negotiable Instruments Act. A unilateral act on the part of the complainant of issuing a notice from any part of the country would not F vest the Court from within whose territorial limits the notice has been issued with the power to entertain a complaint. Presentation of the cheque at a place of the choice of the complainant or issue of a notice from any such place do not constitute ingredients of the offence under Section 138 G and cannot, therefore, confer jurisdiction upon the Court from where such acts are performed. Although the complaint does not claim jurisdiction for the Court at Gurgaon on the ground that the cheque was presented for collection there yet in the Counter affidavit, the respondent has tried to justify the filing of the complaint on that ground. H SREE MAHESH STATIONARIES v. INDIABULLS 377 FINANCIAL SERVICES LTD. However, one cannot accept presentation of a cheque to A be a valid presentation for purposes of limitation within the meaning of Section 138 unless the same is to the drawee bank. On either ground, therefore, the Courts in Gurgaon could not assume jurisdiction. [Paras 5] [379-C-H; 380-A- ~ 8 1.2. Criminal Complalnt No.14089 .of 2009 titled lndiabulls Financial Services Ltd. v. Sree Mahesh Stationaries is transferred from the Court of Judicial Magistrate, First Class, Gurgaon, Haryana to the Court of competent jurisdiction of Chief Metropolitan Magistrate at C Bangalore who shall try the case himself ()r transfer the same to any other Court competent to try the same. [Para 6] [380-C, D] Dashrat
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