Supreme Court: Payee’s Bank Branch Decides Jurisdiction for 138 NI Act Complaints
- rit arora
- Jul 28
- 1 min read
The Supreme Court, in its recent judgment dated 25th July 2025, has clarified and reaffirmed that Section 142(2)(a) of the Negotiable Instruments Act, 1881, vests jurisdiction in offences under Section 138 (cheque dishonour) with the court where the cheque is delivered for collection through an account in the branch of the bank where the payee maintains the account.
The Court was hearing an appeal challenging the order of the Karnataka High Court (Bengaluru) dated 05.03.2024, passed under Section 482 Cr.P.C., which upheld the Magistrate’s decision to return the complaint cases for want of jurisdiction.
The appellant contended that he maintained his account at the Bendurwell, Mangalore Branch of Kotak Mahindra Bank, not at the Opera House, Mumbai Branch, where the cheques were merely presented for credit. The High Court erroneously assumed that his account was held at the Mumbai branch.
Reiterating the principle, the Supreme Court observed that territorial jurisdiction for complaints under Section 138 NI Act is governed by Section 142(2)(a). It mandates that such complaints are to be filed in the court where the payee’s bank branch (where his account is maintained) is located. The Court also referred to Bridgestone India Pvt. Ltd. vs. Inderpal Singh (2016) 2 SCC 75, affirming this interpretation.
Find order here
