Court where bank dishonours cheque has jurisdiction

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In Dashrath Rupsingh Rathod v State of Maharashtra & Anr, the Supreme Court overruled its earlier decision on jurisdiction of courts in offences relating to section 138 of the Negotiable Instruments Act, 1881. The section deals with dishonour of cheques and the Supreme Court held that a complaint can only be filed in the court within whose jurisdiction the bank that dishonoured the cheque is situated.

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The dispute digest is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.

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