Cheque Bouncing- Jurisdisction Of Courts Redefined

The legal nodus of determining the Jurisdistion of Courts in cheque bouncing cases has finally been resolved by the Supreme Court of India. A three Judges bench of the Hon'ble Supreme Court in Dashrath Rupsingh Rathod vs State of Maharashtra¹ has finally decided the issue of territorial jurisdiction concerning criminal complaints filed under section 138 of the Negotiable Instruments Act, 1881. The Court held that return of the cheque by the drawee bank alone constitutes the commission of the offence under section 138 of the Negotiable Instruments Act, 1881 and indicates the place where the offence is committed. Hence the place, situs or venue of judicial inquiry and trial of the offence must logically be restricted to where the drawee bank, is located.