Latest JudgementNegotiable Instrument Act, 1881

M/S Kamal Enterprises & Anr. vs. A.K. Constructions Co., 2024

Territorial jurisdiction

Supreme Court of India·21 January 2025
M/S Kamal Enterprises & Anr. vs. A.K. Constructions Co., 2024
Negotiable Instrument Act, 1881
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Judgement Details

Court

Supreme Court of India

Date of Decision

21 January 2025

Judges

Justices Abhay S. Oka ⦁ Ujjal Bhuyan

Citation

Acts / Provisions

Section 13(1)(ia), Hindu Marriage Act, 1955

Section 25, Hindu Marriage Act, 1955

Facts of the Case

  • The petitioners in this case are the accused in complaints filed under Section 138 of the Negotiable Instruments Act, 1881 (NI Act).
  • The petitioners challenged the territorial jurisdiction of the Trial Court where the complaints were filed, arguing that the court did not have the jurisdiction to entertain the case.

Issues

  • Whether the Trial Court has the territorial jurisdiction to entertain the complaints filed under Section 138 of the NI Act, and if not, whether the complaints should be transferred to the appropriate court?
  • Whether territorial jurisdiction can be considered a valid ground for transferring the complaint from one court to another?

Held

  • The Supreme Court clarified that issues related to territorial jurisdiction must be raised before the Magistrate and cannot serve as a valid ground for transferring the case to another court in this context.
  • The Transfer Petitions were dismissed, and the Magistrate was encouraged to handle jurisdictional issues as per the provisions of the law.

Analysis

The judgement clarified the applicability of following provisions:

  • The Court observed that the petitioners, being the accused, could raise the issue of territorial jurisdiction before the Magistrate.
  • The Magistrate has the authority to return the complaint if it is found that the court lacks territorial jurisdiction, allowing the complaint to be presented to the proper court.