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Case Law Details

Case Name : Shree Raj Travels & Tours Ltd. & Ors. Vs Destination Of The World (Subcontinent) Private Ltd (Delhi High Court)
Appeal Number : CRL. M.C. 1056/2011
Date of Judgement/Order : 21/09/2011
Related Assessment Year :

Shree Raj Travels & Tours Ltd. & Ors. Vs. Destination Of The World (Subcontinent) Private Ltd  (Delhi High Court)- In a case of bounced cheque, the Delhi high court has ruled that the magistrate in the place where the cheque was drawn and where the drawee bank is situated has jurisdiction to deal with the complaint. The power under the Negotiable Instruments Act is not with the magistrate where the cheque was presented or from where the notice was issued to the offending party. Shree Raj issued some 45 cheques drawn on State Bank of India in Mumbai to Destination of the World in New Delhi. When the payee company presented them to ICICI Bank in Delhi, they were dishonoured by bank for want of funds.

The Delhi company sent 15 days’ notice to the Mumbai firm, as required by law before complaining to the magistrate. As the payment was still not made, a complaint was filed before a Delhi magistrate by the Delhi firm against the Mumbai firm and six of its directors. Shree Raj contested the jurisdiction of the Delhi magistrate, arguing that it was Mumbai where the complaint had to be filed as the cheques were drawn on the bank there. Merely because the cheques were presented in Delhi and notice was issued from Delhi did not give the Delhi magistrate jurisdiction. The high court asked the magistrate to return the complaint. It also remarked that due to electronic clearing in recent times, the situation has changed. However, the changed scenario will be taken note of in an appropriate case in future.

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  1. chandrakala says:

    sir, I had received a cheque of Rs 12,50,000 which i had invested in a company named AFSL by selling off my house .The company did not give me a single penny wither the interest or my capital, the cheque for my capital given has bounced, and i kept the cases on him by paying another 50,000 to the lawyer in 2010, no any response from the AFSL director, how long will it take to get my money as he is an influenced person , i will get my money back or no kindly let me know.

    Thanking you

  2. SATYA PRAKASH says:

    The law must be for the people and any deviation from this priciple is not justified. The Court should allow to file the complaint in Delhi if the person resides in Delhi.

  3. prakash says:

    Importance of collecting banker is completely overlooked in the judgement.Crossed cheque cannot be presented directly by the creditor to the other bank.

    creditor will receive intimation of non clearance of cheque only from his banker and not from the other bank.

    If this judgement is not reversed then a creditor will have to insist the purchaser to open bank account where creditor is carrying on business!!!
    Trade organizations and others should immediately file appeal and get the judgement reversed

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