Breaking; NI Act Ordinance 2015 is Retrospective; Dashrath Rathod's Judgment have no effect in view of the Amendment; SC [Read Judgment]

A Two Judge Bench of the Supreme Court comprising of Justices J.S.Khehar and R.Banumati has held that, in view of the Amended Section 142 of Negotiable Instruments Second Ordinance 2015, the place where a cheque is delivered for collection i.e., the branch of the bank of the payee or holder in due course, where the drawee maintains an account, would be the determinative of. A Two Judge Bench of the Supreme Court comprising of Justices J.S.Khehar and R.Banumati has held that, in view of the Amended Section 142 of Negotiable Instruments Second Ordinance 2015, the place where a cheque is delivered for collection i.e., the branch of the bank of the payee or holder in due course, where the drawee maintains an account, would be the determinative of the place of territorial jurisdiction for filing Complaint under the NI Act. In the above view of the matter, we are satisfied, that the judgment rendered by this Court in Dashrath Rupsingh Rathod’s case would also not non-suit the appellant for the relief claimed.” “A perusal of the amended Section 142, amended through the Negotiable Instruments Second Ordinance, 2015, vests jurisdiction for initiating proceedings for the offence under Section 138 of the Negotiable Instruments Act, inter alia in the territorial jurisdiction of the Court, where the cheque is delivered for collection. We are also satisfied, based on Section 142A to the effect, that the judgment rendered by this Court in Dashrath Rupsingh Rathod’s case, would not stand in the way of the appellant, insofar as the territorial jurisdiction for initiating proceedings emerging from the dishonor of the cheque in the present case arises.” “The words “.as if that sub-section had been in force at all material times.” used with reference to Section 142, in Section 142A gives retrospectivity to the provision”.