New judgement of supreme court in the case of Dushrath Rup Singh Rathod v state of Maharastra ----------------- A three Judge Bench of the Supreme Court finally held that a Complaint of Dis-honour of Cheque can be filed only to the Court within whose local jurisdiction the offence was committed, which in the present context is where the cheque is dishonoured by the bank on which it is drawn. it is related to Dis-honour of Cheque cases can be filed only to the Court within whose local jurisdiction, the offence was Committed; ie, where the cheque is dishonoured by the bank on which it is drawn. Bhaskaran Vs Balan (1999) which allowed Five territorial Jurisdictions overruled.----- -------- The Apex Court in the present case observed that inasmuch as the three-Judge Bench in Ishar Alloy has categorically stated that for criminal liability to be attracted, the subject cheque has to be presented to the bank on which it is drawn within the prescribed period, Bhaskaran Case has now been significantly watered down, if not overruled. Accordingly, the situs of the notice, one of the so-called five ingredients of Section 138, has now been held not to clothe that Court with territorial competency. The Supreme Court also noted that manipulative abuse of territorial jurisdiction has become a recurring and piquant factor and the liberal approach taken in Bhaskaran needs a stricter interpretation of the statute, precisely because of its misemployment so far as choice of place of suing is concerned.
Posted on: Tue, 19 Aug 2014 03:34:33 +0000
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