The recent judgement of SC on cheque dishonour has added to the distresses of the litigants, as there are several points that went unaddressed by the judgement. One such being that of at par cheques, for the same are not actually sent for clearance to the drawee branch, but is dealt with at the nearest available branch or the clearing house. When that is so, no fiction can be introduced to judge the jurisdiction based on the drawee branch. Rather it has to be the clearing house to decide jurisdiction. The Delhi High Court and the Bombay High Court have read section have already held that the clearing houses are the places of jurisdiction. In this regard one may refer to the Sections 69 to 75 of the Act, whereby a presentment with the authorised agent constitutes a valid presentment. It thus would be only a fiction to hold that the dishonour took place at drawee bank. Also such view does not address the technological changes.
Posted on: Sun, 31 Aug 2014 04:01:43 +0000
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