Court can hear cheque bounce case at place of receipt: SC

NEW DELHI: The Supreme Court today held that courts at places where a cheque is deposited for encashment can hear cheque-bounce complaints.

A bench of Chief Justice P Sathasivam and Justice Jagdish Singh Khehar gave the ruling while setting aside an order of the Delhi High Court which had held just because the cheques were presented in Delhi, the courts here will not have jurisdiction.

"It is apparent, the conclusion drawn by the High Court, in the impugned order of April 27, 2012, is not in consonance with the decision rendered by this Court in Nishant Aggarwal's case.

"Therein it has been concluded, that the court within the jurisdiction whereof, the dishonoured cheque was presented for encashment, would have the jurisdiction to entertain the complaint filed under section 138 of Negotiable Instruments Act," the bench said.

The apex court's observations came in its judgement in a cheque bounce case, wherein cheques presented for encashment in Delhi were dishonoured.

While the complaint was being heard by a magisterial court, on an appeal by the issuer of the cheque, the Delhi High Court had directed that the courts here did not have jurisdiction.

The high court's order was challenged in the apex court.