In which of the following judgments has the Supreme Court held that only those courts within whose…
In Dashrath Rupsingh Rathod v. State of Maharashtra (2014) 9 SCC 129 the Supreme Court held that a complaint under section 138 of the Negotiable Instruments Act, 1881 could…
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In which of the following judgments has the Supreme Court held that only those courts within whose territorial limits the drawee bank is situated, would have jurisdiction to try the cases for offence under Section 138 of the Negotiable Instruments Act, 1881?
Answer and explanation
Correct answer B
In Dashrath Rupsingh Rathod v. State of Maharashtra (2014) 9 SCC 129 the Supreme Court held that a complaint under section 138 of the Negotiable Instruments Act, 1881 could be tried only by the court within whose territorial limits the drawee bank is situated. K. Bhaskaran had earlier allowed several places of jurisdiction, and Kalyanpur Cement is not a section 138 case.
Current law: The Negotiable Instruments (Amendment) Ordinance and then the 2015 Act, effective from 15 June 2015, inserted sections 142(2) and 142A: where a cheque is delivered for collection through an account, jurisdiction lies where the payee's or holder's bank branch maintaining that account is situated, and otherwise where the branch of the drawee bank at which the drawer maintains the account is situated. The drawee-bank-only rule of Dashrath no longer governs.
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