28/11/2025
🚨 Supreme Court Update: Where to file a Cheque Bounce Complaint? 🚨
The Supreme Court has issued a crucial clarification regarding Section 142(2)(a) of the Negotiable Instruments Act. Here is the breakdown:
📌 The Core Ruling:
If an Account Payee cheque is dishonoured, the complaint must be filed before the court that has jurisdiction over the Payee’s Home Branch (the branch where the payee maintains their account).
📌 What if deposited it elsewhere?
The Court clarified that the location of the deposit does not determine jurisdiction. Even if you deposit the cheque at a branch in a different city, a "deeming fiction" applies—meaning the law treats the cheque as having been delivered to your home branch.