Section 138, NI, Act - At Par Cheques - Territorial Jurisdiction

Very recently, the Hon'ble Bombay High Court in Mr.Ramanbhai Mathurbhai Patel Vs State of Maharashtra & Anr, after analyzing the decision of the Hon'ble Supreme Court of in Dashrath Rupsingh Rathod Vs State of Maharashtra & Anr, observed that when 'At Par' Cheques are dishonored, the Complainant (drawee) can institute criminal proceedings within the territorial jurisdiction against the drawer of the nearest available branch of the bank of the drawer (accused) and not within the territorial jurisdiction of the branch of the bank of the drawer (accused). The relevant portion is extracted herein under;

"8. It is thus clear that in the present case by issuing cheques payable at all branches, the drawer of the cheques had given an option to the banker of payee to get the cheques cleared from the nearest available branch of bank of the drawer. It, therefore, follows that the cheques have been dishonoured within the territorial jurisdiction of Court of Metropolitan Magistrate at Kurla. In view of judgment of Hon'ble Supreme Court in the matter of Dashrath v. State of Maharashtra cited (supra), the learned Metropolitan Magistrate of Kurla Court has jurisdiction to entertain and decide the complaint in question."