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CMA Intermediate · Business Laws and Ethics · Negotiable Instruments Act, 1881

Sunita Enterprises filed a Section 138 complaint against Kumar in a court having jurisdiction under Section 142(2), and it is pending. Sunita Enterprises later receives another dishonoured cheque from Kumar, which was delivered for collection at a bank in a different city. Under Section 142A(2), where must the subsequent complaint be filed?

The subsequent complaint must be filed before the same court where the earlier complaint is pending. Section 142A(2) requires all later Section 138 complaints against the same drawer to go to that court, regardless of where the new cheque was delivered for collection or presented.

  1. AIn a court at the place of the bank where the new cheque was presented
  2. BBefore the same court where the earlier complaint is pendingCorrect
  3. CIn any court chosen by Kumar
  4. DOnly in the court where Kumar was born

Explanation

Section 142A(2) says that where a complaint is pending in the court having jurisdiction under Section 142(2), all subsequent complaints arising out of Section 138 against the same drawer must be filed before that same court. This applies irrespective of whether the cheques were delivered for collection or presented within that court's territorial jurisdiction. The option naming the new bank's place ignores this rule.

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