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CS Professional · Banking and Insurance - Laws and Practice · Payment and Collection of Cheques and Other Negotiable Instruments

Before 15 June 2015, Deepak Pharma had filed three separate prosecutions against the same drawer, Nisha Chemicals, for three dishonoured cheques in courts at Pune, Nagpur and Nashik. The Pune case was filed first and is pending. Under section 142A(3), what happens once this fact is brought to the notice of the Nagpur and Nashik courts?

The Nagpur and Nashik courts must transfer their cases to the Pune court. Section 142A(3) requires later pending prosecutions by the same payee against the same drawer to move to the court where the first case was filed and is pending.

  1. AEach court continues independently to avoid delay
  2. BThe Nagpur and Nashik courts transfer their cases to the court of first filing, which has jurisdiction under section 142(2)Correct
  3. CThe accused chooses which of the three courts will try all cases
  4. DThe Pune case is transferred to the court that has the largest cheque amount

Explanation

Section 142A(3) deals with more than one prosecution by the same payee against the same drawer pending in different courts on the commencement date of the 2015 Amendment Act. The later courts must, once the fact is brought to their notice, transfer their cases to the court where the first case was filed and is pending. The cheque amount and the accused's preference are irrelevant.

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