Tuesday, April 14, 2009

Territorial Jurisdiction of a Court to try an Offence Under 138 of N.I Act

On 12th December, 2008, a two Judges Bench of SC in M/s. Harman Electronics (P) Ltd. & Anr. Vs M/s. National Panasonic India Ltd. [Crl. A. No. 2021 of 2008] while examining the territorial jurisdiction of a court to try an offence under Section 138 of the Negotiable Instruments Act, 1881,observed that "a banking institution holding several cheques signed by the same borrower can not only present the cheque for its encashment at four different places but also may serve notices from four different places so as to enable it to file four complaint cases at four different places. This only causes grave harassment to the accused. It is, therefore, necessary in a case of this nature to strike a balance between the right of the complainant and the right of an accused vis-à-vis the provisions of the Code of Criminal Procedure."

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