SHAH AND MODI DEVELOPERS Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) Applicants have filed this application under Section 407 read with Sections 177 and 178 of the Criminal Procedure Code, seeking transfer of case No. 8437 of 2006 which is pending in the Court of J.M.F.C. 5,h Court at Nasik to the Court of Metropolitan Magistrate. Andheri or Borivali at Mumbai.

(2.) Brief facts arc as under:

(3.) A complaint was iiled by respondent No. 2 under Section 138 of the Negotiable Instruments Act on account of dishonour of cheques given by the applicants herein. Few of the admitted facts are that the applicants were permanent residents residing at Mumbai and carrying on their business at Mumbai. Respondent No. 2, in a meeting held in Mumbai, showed his willingness to invest some amount in the project of con-struction of the applicants, which was in progress at Kandivali, Mumbai. Accord-ingly, he paid a sum of Rs. 8 lacs to the ap-plicants, Applicants paid interest for some, time. However, on account of financial con-straints, the}' could not pay interest. It is the case of respondent No. 2 that two cheques were given by the applicants; one for Rs. 5,00,000/- and the other for Rs. 3,00,000/- drawn on Malad Sahakar Bank Ltd.. Kandivali, Mumbai. It is the case of respondent No.2 that by that time, he had shifted to Nasik and he deposited the said cheques at Nasik which were returned with remark "account closed." Legal notice was sent by respondent No.2 to the applicants through his Advocate at Nasik which was received by the applicants at Mumbai. A reply was also given by the applicants, de-nying the allegations made therein and al-leging that, the said cheques were given as and by way of security. Respondent No. 2 filed a complaint under Section 138 of the Negotiable Instruments Act before the J.M.F.C, 5th Court at Nasik, alleging that the notice had been sent by him from Nasik and the cheques were deposited by him at Nasik and, therefore, the Nasik Court has jurisdiction to entertain the complaint.