Tracking the Dilemma Over Jurisdiction in 138 Matters of the NI Act, 1881
By
Naman Mohnot
Introduction and Issue
Very recently, Hon’ble Supreme Court of India in Dashrath Rup Singh Rathod v. State of Maharashtra1-2 clarified a legal nodus of substantial public importance pertaining to Court’s territorial jurisdiction concerning criminal complaints filed under Chapter XVII of the Negotiable Instruments Act, 1881 (for short, ‘the NI Act’) by holding that dishonour of cheque cases can be filed only to the Court within whose local jurisdiction, the offence was committed; i.e., where the cheque is dishonoured by the bank on which it is drawn. In this landmark judgment, Full Bench of Hon’ble Apex Court overruled K. Bhaskaran v. Sankaran Vaidhyan Balan3 wherein two Judge Bench had held that “the offence under Section 138 of the Act can be completed only with the concatenation of a number of acts. Following are the acts which are ....