Supreme Court Clarifies Jurisdiction in Cheque-Bounce Cases

The Supreme Court has ruled that cheque-bounce cases must be filed in a court where the complainant's bank is located. This decision addresses jurisdiction issues under Section 138 of the Negotiable Instruments Act. The ruling, delivered by Justices J B Pardiwala and R Mahadevan, also references amendments made in 2015.

The Supreme Court has delivered a landmark verdict, declaring that cheque-bounce cases should be filed in courts within the jurisdiction of the complainant's bank location.

This ruling addresses the longstanding issue of jurisdiction in cases under Section 138 of the Negotiable Instruments Act concerning cheque dishonour due to insufficient funds.

The decision by Justices J B Pardiwala and R Mahadevan marks a significant clarification in legal proceedings, especially reflecting on complexities prior to the 2015 amendment of the Act.