27 March 2015: It is very common for people to exchange cheques for various kind of transactions in day to day life. Most of the times, people extend loans in exchange of post dated cheques for EMIs.
Coming to the law point. Till less than an year ago, the case of cheque dishonor was to be filed at the location of the bank of the Complainant i.e. the person in whose name the cheque was issued.
For example: I live in Delhi and give a cheque of Rs. 50, 000/- to Shyam who lives in Patna. Shyam presents the cheque for payment at his bank in Patna and the cheque is dishonored for whatever reasons. Shyam has the liberty to file the case against myself in Patna.
The issue of Jurisdiction has been re-defined by the Hon'ble Supreme Court.
In the Dasrath Rupsingh case, the apex court has stated that the factor for determining jurisdiction has to be the location where the cheque bounced, meaning thereby, the bank of the person who issued the cheque and not at the place the intimation of dishonour reaches, i.e, bank of the complainant. The Bench further held that the offence under the section shall occur when the cheque is returned unpaid.
This would mean, in layman's language as illustrated in an example below.
I live in Delhi and give a cheque of Rs. 50, 000/- to Shyam who lives in Patna. Shyam presents the cheque for payment at his bank in Patna and the cheque is dishonored for whatever reasons. Shyam will have to file the case against myself in Delhi.
So kindly beware while accepting cheques of other states.
For example: I live in Delhi and give a cheque of Rs. 50, 000/- to Shyam who lives in Patna. Shyam presents the cheque for payment at his bank in Patna and the cheque is dishonored for whatever reasons. Shyam has the liberty to file the case against myself in Patna.
The issue of Jurisdiction has been re-defined by the Hon'ble Supreme Court.
In the Dasrath Rupsingh case, the apex court has stated that the factor for determining jurisdiction has to be the location where the cheque bounced, meaning thereby, the bank of the person who issued the cheque and not at the place the intimation of dishonour reaches, i.e, bank of the complainant. The Bench further held that the offence under the section shall occur when the cheque is returned unpaid.
This would mean, in layman's language as illustrated in an example below.
I live in Delhi and give a cheque of Rs. 50, 000/- to Shyam who lives in Patna. Shyam presents the cheque for payment at his bank in Patna and the cheque is dishonored for whatever reasons. Shyam will have to file the case against myself in Delhi.
So kindly beware while accepting cheques of other states.
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