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Supreme Court of India 2025-03-06 dismissed

M/s Shri Sendhur Agro & Oil Industrie vs Kotak Mahindra Bank Ltd

Bench: 2 — J. B. Pardiwala, R. Mahadevan

In Brief

A bank filed a complaint under Section 138 of the Negotiable Instruments Act in Chandigarh court against a coconut oil business based in Coimbatore, after a cheque bounced. The accused sought transfer to Coimbatore, claiming the entire transaction occurred there and that Chandigarh court lacked jurisdiction. The Supreme Court dismissed the petition, holding that Section 142(2)(a) of the N.I. Act (as amended in 2015) permits filing complaints in courts where the bank's collection account is located. Distance, language barriers, and inconvenience alone do not justify transfer under Section 406 Cr.P.C. Transfer is permissible only when essential for fair trial, supported by credible evidence of bias or impediment to justice. The accused may seek exemption from personal appearance or participate online.

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Criminal Procedure Negotiable Instruments Jurisdiction - Territorial Transfer of Cases Cheque Bounce Banking Law Evidence & Procedure

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