MAHIKA ENTERPRISES Vs. STATE (NCT OF DELHI)

JUDGEMENT

(1.) The above petitions are being disposed of together as not only these are similar in facts, but the questions of law canvassed before this Court, are also same.

(2.) Petitioners seek quashing of complaints under Section 138 of the Negotiable Instruments Act, 1881 (for short hereinafter referred to as "the Act") filed by respondent No. 2, pending in the court of Metropolitan Magistrate, New Delhi. It was alleged in the complaint that the petitioner No. 1 was appointed as dealer by respondent No. 2 for the sale and purchase of electrical goods manufactured by it. From time to time, goods were supplied by the respondent No. 2 to petitioner No. 1. Respondent No. 2 was maintaining an account in his books regarding the supplies made and the payments received. Petitioner No. 2 was proprietor/partner of petitioner No. 1. In order to discharge its liability, petitioner No. 1 had issued cheques bearing Nos. 916032 dated 2nd October, 2008 for Rs. 71,337/-, 916033 dated 22nd October, 2008 for Rs. 10,000/- and the third cheque bearing No. 916034 dated 13th March, 2009 for Rs. 71,337/- all drawn on State Bank of Mysore, J.C. Road Branch, Bangalore, favouring the respondent No. 2. On presentation, aforesaid cheques were returned unpaid by the banker of respondent No. 2 with the remarks "payment stopped by the drawer" on 13th October, 2008, 28th October, 2008 and 24th March, 2009 respectively. Despite service of statutory notices of demand dated 21st October, 2008, 17th November, 2008 and 30th March, 2009 in respect of the above cheques, petitioners failed to pay the amount of these cheques within fifteen days of the service of said notices. Thus, petitioners had committed an offence under Section 138 of the Act.

(3.) With regard to territorial jurisdiction of Delhi courts, it was alleged that cause of action to file the complaints had arisen within the jurisdiction of Delhi as respondent No. 2 had presented the cheques in its account in Corporation Bank, Connaught Place Branch, New Delhi as also the notices were issued from Delhi.