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M/s Bridgestone India Pvt. Ltd. v. Inderpal Singh

Criminal Appeal · Neutral citation not assigned (Criminal Appeal No. 1557 of 2015)Decided 24 Nov 2015
Criminal Appeal No. 1557 of 2015
Justice J.S. Khehar · Justice R. Banumathi

Background

Inderpal Singh issued a cheque for Rs. 26,958, drawn on a Union Bank of India branch in Chandigarh, to Bridgestone India. When the cheque was presented at IDBI Bank in Indore, it was dishonoured, and Bridgestone filed a complaint under Section 138 in a court in Indore. Singh objected that only the Chandigarh court had jurisdiction, and the Madhya Pradesh High Court agreed, relying on the Supreme Court's decision in Dashrath Rupsingh Rathod (2014).

Decision Breakdown

The Supreme Court allowed the appeal and set aside the High Court's order. Under the Dashrath ruling, the High Court had held, jurisdiction lay only where the drawee bank was located. However, the Negotiable Instruments (Amendment) Second Ordinance, 2015 (deemed in force from 15 June 2015) amended Section 142 so that the complaint can be tried where the payee's bank branch collects the cheque, and inserted Section 142A giving that change retrospective effect. Applying the amendment, the Indore Magistrate had jurisdiction, and the parties were directed to appear before the Judicial Magistrate, First Class, Indore, on 15 January 2016. Connected Criminal Appeals 1562 to 1564 of 2015 were allowed on the same terms.

Lesson Learnt

Where a bounced cheque can be pursued in a criminal court depends on the law in force when the complaint is filed. Under the amended provision discussed in this judgment, a payee could file the complaint in the place where its own bank branch collected the cheque.

Official source (sci.gov.in)View Judgment (PDF)

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