For Account-Payee Cheque Dishonour, Complaint Must Be Filed At Place of Payee’s Home Branch: Supreme Court Explains Section 142(2)(a) NI Act

The Supreme Court ruled that for dishonour of an account-payee cheque under Negotiable Instruments Act, 1881 (NI Act), complaints under Section 138 must be filed in the court that has jurisdiction over the branch where the payee maintains their bank account — i.e. the payee’s “home branch.” (Live Law) Even if the cheque was deposited at a different branch, the “deeming fiction” under Explanation to Section 142(2)(a) treats it as delivered at the home branch for legal purposes. (Live Law) . The Court overruled a prior inconsistent decision (declared per incuriam) and stressed this interpretation prevents forum-shopping and ensures uniformity in cheque-dishonour proceedings. (Live Law) This has significant bearings on cheque-bounce litigation strategy, procedural jurisdiction, and the proper court for initiating complaints under NI Act. (Live Law)