Transfer Petition (Crl.) No. 403 of 2013. Case: Sree Mahesh Stationeries Vs Indiabulls Financial Services Ltd.. Supreme Court (India)

Case NumberTransfer Petition (Crl.) No. 403 of 2013
JudgesT.S. Thakur and C. Nagappan, JJ.
IssueNegotiable Instruments Act, 1881 - Section 138; Code of Criminal Procedure (CrPC) - Section 406
Judgement DateAugust 05, 2014
CourtSupreme Court (India)


T.S. Thakur, J.

  1. In this petition Under Section 406 of the Code of Criminal Procedure, the Petitioners seek transfer of Criminal Complaint No. 14089 of 2009 from the Court of Judicial Magistrate, First Class, Gurgaon, Haryana to the Court of competent jurisdiction at Bangalore.

  2. The Petitioner appears to have borrowed a loan of Rs. 15,00,000/- (Rupees Fifteen Lakh) for business purposes from the Respondent-company. A cheque allegedly issued in partial repayment of the loan amount and drawn on the Syndicate Bank, City Market Branch, Bangalore, when presented for encashment to ING Vysya Bank, Gurgaon appears to have been dishonoured resulting in the issue of statutory notices to the Petitioners and eventual filing of a complaint before the Judicial Magistrate, First Class at Gurgaon Under Section 138 of The Negotiable Instruments Act, 1881. The Magistrate has taken cognizance and summoned the Petitioners for appearance to face the trial. Petitioners have, in that backdrop, filed the present transfer petition seeking transfer of the complaint afore-mentioned from Gurgaon to the competent Court at Bangalore.

  3. Petitioners' case, as is evident from the averments made in the transfer petition, is that the Courts at Gurgaon have no jurisdiction to entertain the complaint specially when the cheque in question was issued and dishonoured at Bangalore and the offence, if any, was committed only at Bangalore. Issue of statutory notices to the Petitioners from Gurgaon also does not confer jurisdiction upon the Courts concerned or justify continuance of the proceedings at Gurgaon.

  4. Having heard learned Counsel for the parties, we are inclined to allow this petition. We say so because in para 7 of the complaint filed by the Respondent-complainant the reason for filing the complaint at Gurgaon has been set out, thus:

    That the cause of action for filing the present complaint arose when the aforesaid cheque was issued to the complainant company when the intimation regarding dishonour of the said cheque was received when the aforesaid legal notice Under Section 138 of the N.I. Act was sent to the accused and on the failure of the accused to make payment despite being served with the said notice within the stipulated period of 15 days. The cause of action is still subsisting and continuing. This Hon'ble Court has jurisdiction to take cognizance of the offence as the cause of action arose within the jurisdiction of this Hon'ble Court. The...

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