Dashrath Rupsingh Rathod vs State of Maharashtra (2014 11 S.C.R. 921)

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Introduction:

The case of Dashrath Rupsingh Rathod vs State of Maharashtra (2014) addressed jurisdictional issues under Section 138 of the Negotiable Instruments Act, 1881, concerning dishonoured cheques. The petitioner challenged the jurisdiction where the complaint was filed, as the cheques were issued in one location but the complaint was filed in another.

Facts:

The petitioner, Dashrath Rupsingh Rathod, issued dishonoured cheques in one location, but the complainant filed the case in a different jurisdiction. The main issue was whether complaints regarding dishonoured cheques can be filed in a jurisdiction other than where the cheque was presented for payment.

Issues:

Whether a complaint under Section 138 can be filed in a jurisdiction where the cheque was not presented.
Jurisdictional rules related to dishonoured cheques.

Contention of Petitioner:

The petitioner argued that the complaint should be filed only in the jurisdiction where the cheque was presented for payment, not where it was issued.

Contention of Respondent:

The respondent contended that the offence under Section 138 could be considered where any part of the offence occurs, including the location of the drawee’s bank, as per Section 178(d) of the CPC.

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Court’s Analysis:

The Court relied on the K. Bhaskaran vs Sankaran Vaidhyan Balan 1999 case, which expanded the scope of jurisdiction for Section 138 offences. It clarified that complaints could be filed in any jurisdiction where part of the offence occurs, particularly the drawee’s bank. The Court also emphasized the six-month limitation for cheque presentation and the 15-day window to pay after receiving notice.

Conclusion:

The Supreme Court upheld the Bombay High Court’s decision, stating that complaints for dishonoured cheques should be filed in the jurisdiction of the drawee’s bank. This ruling clarified the application of jurisdiction in cheque dishonour cases, ensuring fairness and access to justice

Posted By: Aishwarya Chourasia

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