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

Sundar Exports filed a Section 138 complaint against Alpha Pvt Ltd in a court having jurisdiction under Section 142(2), and it is pending. Sundar later gets another cheque of Alpha dishonoured, the cheque having been delivered for collection at a bank branch in a different city. Where must the subsequent complaint against the same drawer be filed under Section 142A(2)?

The subsequent complaint must be filed before the same court where the first complaint is pending. Section 142A(2) requires this for all later section 138 complaints against the same drawer, irrespective of where those cheques were delivered for collection or presented for payment.

  1. ABefore the court of the city where the second cheque was delivered for collection
  2. BBefore the same court where the first complaint is pending, irrespective of where the cheques were presentedCorrect
  3. CBefore any court chosen by the drawer
  4. DBefore the court where the drawer's registered office is located, regardless of the pending case

Explanation

Section 142A(2) says that where a complaint against the drawer is pending in the court having jurisdiction under Section 142(2), all subsequent complaints under section 138 against the same drawer shall be filed before that same court. This applies irrespective of whether the cheques were delivered for collection or presented for payment within its territorial limits. The option naming the second collection city ignores this rule.

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