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

Meera Industries filed a section 138 complaint against Kapoor Exports in a court having jurisdiction under section 142(2), and that complaint is pending. Meera Industries later gets two more cheques from Kapoor Exports dishonoured, both delivered for collection at a bank branch in a different city. Where should the subsequent complaints be filed?

Both complaints go to the same court where the first complaint is pending. Section 142A(2) requires subsequent section 138 complaints against the same drawer to be filed there, regardless of where the later cheques were delivered for collection or presented.

  1. AIn the court of the city where the later cheques were presented
  2. BIn the same court where the first complaint is pendingCorrect
  3. CIn any court chosen by the accused drawer
  4. DIn the court of the drawer's bank branch, whatever the pending complaint

Explanation

Under section 142A(2), once a complaint by the payee against the drawer is pending in the court having jurisdiction under section 142(2), all subsequent section 138 complaints against the same drawer are filed before that same court. This applies irrespective of where the later cheques were delivered for collection or presented. The first option ignores that rule.

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