Dashrath Rupsingh Rathod vs. State of Maharashtra & Anr (criminal appeal no. 2287 of 2009

The above new landmark judgment of Supreme Courthas changed the basic criteria for filing Criminal complaints under the provisions of Section 138 of Negotiable Instruments Act for dishonor of cheques.Previously, a case under Section 138 could be initiated by the holder of the cheque at his place of business or residence. However, the Hon'ble Supreme Courtin the above judgmenthas ruled that the complaint has to be filed at the place where the branch of the bank on which the cheque was drawn is locatedand the judgment would apply retrospectively, i.e, lakhs of cases pending in various Courts across the country would witness a interstate transfer of cheque bouncing cases.

In our opinion,the new law for filing Complaint for dishonor of Cheque will now become a lot more tedious and costly. It has come as a relief for the drawer of the bounced cheque, but will be of great adversity for the complainants.

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