Skip to main content

The new law on territorial jurisdiction for cheque bounce matters

 In case of a Dishonour of Cheque, one can send a legal notice and follow the legal procedure in order get the cheque honoured in the Court of appropriate jurisdiction. For this you will need the help of a cheque bounce lawyer.


The Gujarat High Court in its recent judgment of Brijendra Enterprise v. State of Gujarat and another has explained the law relating to territorial jurisdiction for filing a complaint for dishonor of cheques.   


As per the Negotiable Instruments (Amendment) Act, 2015 a complaint can be filed under Section 138 for dishonor of cheque at a court within whose local jurisdiction:-


The branch of the bank is located


The payee or the holder maintains an account


Connect with an expert lawyer for your legal issue

 


In view of this recent amendment, a complaint for dishonor of cheque under Section 138 of Negotiable Instruments Act can be filed in the court situated at a place where the bank of the payee is situated.


For better understanding, consider the following examples-

 


Mr. A holds an account in Navrangpura Branch, Ahmedabad of “XYZ” Bank, issues a cheque payable in favor of B. B, who holds an account with the M.S University Road Branch, Vadodara of the “PQR” bank, deposits the said cheque at Surat Branch of ‘PQR bank’ and the cheque is dishonored. The complaint will have to be filed before the court having jurisdiction where the M.S University road branch is situated.

 


A holds an account with the Navrangpura branch, Ahmedabad, of "XYZ" Bank issues a cheque payable in favor of B. B presents the cheque at the Vadodara Branch of the ‘XYZ’ Bank ( but B does not hold an account in any branch of the "XYZ" bank) and the cheque is dishonored. The complaint will have to be filed before the court having jurisdiction over the Navrangpura branch, Ahmedabad, of "XYZ" Bank.

 


Consult : Top Cheque Bounce Lawyers in India 



To summarise, when the cheque is delivered for collection through an account, the complaint is to be filed before the court  where the branch of the bank is located, where the payee or the holder in due course maintains his account and, when the cheque is presented for payment over the bank, the complaint is to be filed before the court where the drawer maintains his account.         

Comments

Popular posts from this blog

Concept of constitutionalism

  Concept of constitutionalism Who Started Constitutionalism? John Locke - The English Bill of Rights is a foundational constitutional document that helped inspire the American Bill of Rights. Political theorist  John Locke  played a huge role in cementing the philosophy of constitutionalism.  Constitution is a written law which describes the structure of Government, the rules according to which the Govt. must work and the boundaries within which the Govt. must work. Constitutionalism   can be defined as the doctrine that governs the legitimacy of government action, and it implies something far more important than the idea of legality that requires official conduct to be in accordance with pre-fixed legal rules. Constitution constitution is the document that contains the basic and fundamental law of the nation, setting out the organization of the government and the principles of the society. Basic norm (or law) of the state; System of integration and organi...

business tips

1. Have a clear vision for your business and strive to achieve it. 2. Hire great people and give them ownership in the company. 3. Provide excellent customer service. 4. Establish yourself as an expert in your field. 5. Develop relationships with key suppliers, customers, and partners. 6. Keep track of your finances and invest in marketing and innovation. 7. Utilize digital platforms to reach a larger audience. 8. Take calculated risks and back yourself. 9. Continuously strive to improve your products and services. 10. Make customer satisfaction your priority.

Effects of Non-Registration

 Effects of Non-Registration The Companies Act, 2013 evidently highlights that the main essential for any organization to turn into a company is to get itself registered. A company cannot come into existence until it gets registered. But no such obligation has been imposed for firms by the Indian Partnership Act, 1932. If a firm is not registered it does not cease to be called as a firm, it still exists in the eyes law. Certainly, such a big advantage is not absolute but is subjected to a lot of limitations which we will study further. Non-registration of a firm simply means that the business skips the formalities of incorporation and ceases to exist in the eyes of the law. section 58 of the Indian Partnership Act, 1932 deals with the procedure of incorporation. Likewise, the meaning of non-registration is the exact opposite of registration, meaning when a firm does not go through the procedure of incorporation or start carrying on activities without getting registered. Effects of ...