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2025BankingLatestLegalNovember 2025Supreme Court

SC Clarifies – Section 138 NI Act Tied to Payee’s Bank Branch

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Section 138 NI Act – Territorial Jurisdiction of Courts

Jurisdiction in cheque bounce cases under Section 138 NI Act lies exclusively with the Court in whose local jurisdiction the payee’s “home branch” of the Bank is situated, even if the cheque was deposited at another branch.

Where Payee’s Home Branch of the Bank is situated, the Court of that area has jurisdiction under Section 138 NI Act.

 Judgment of the Supreme Court in Transfer Petition (Criminal) No.1099 of 2025 of Balaji Industries Ltd and others   Vs.  M/s HEG Ltd with connected matter

 

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