‘Cheque bounce cases at place of transaction’

The Delhi high court has ruled that cases of cheque bounce can only be entertained by courts at the place of transaction.

The ruling has come in response to an appeal filed by Zeenat Insaf, a resident of Mumbai. She had challenged a Delhi trial court’s jurisdiction to entertain a complaint by Dr Sudanshu Bhattacharya, a cardio thoracic vascular surgeon in Mumbai. Bhattacharya had operated upon Insaf’s father at Breach Candy Hospital.

She had made a payment through a cheque of a bank located in Mumbai. Bhattacharya gave the cheque before his bank in Mumbai. The cheque bounced.

The cardiologist contacted his lawyer in Delhi. He sent a notice to Insaf. A complaint against her was filed before a Delhi court on the grounds that the lawyer who sent the notice was located in Delhi.

The Delhi high court said that sending a notice from Delhi would not
confer jurisdiction on Delhi courts. Delhi courts have no territorial jurisdiction to entertain and try complaints filed by a respondent who is based in Mumbai.