Legal Advice

Transfer cheque bounce case to my current place of living

Shivendra Pratap Singh


High Court Lucknow

Cheque Bounce | Criminal Law

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Question asked on: 26 May, 2022

Question: I want to transfer cheque bounce case to my current place of living. I took a personal loan from Kotak Mahindra Bank for 4 lacs and had been paying EMI for up to 19 months and due to COVID and loss of job. After the moratorium, I am not able to pay my emi. But the bank bounced my cheque for the whole loan amount and filed 138 in Gujarat Ahmedabad.

I’m living in Tamil Nadu. The bank had processed the loan in Chennai. But they intentionally filed the case in Gujarat and harrassing me to repay the whole amount. The loan itself is an unsecured loan and loan tenure is upto 2024. My outstanding due is around 2 lacs but they bounced the cheque for the whole amount. 

They had collected my cheque for loan process and EMI before actual payment of loan amount. Please advise me in this regard sir. How to deal with this issue. Can I file any petition in Madras High court to change the case from Gujarat to my native or any way to deal with this.

Asked from: Tamil Nadu

You have given the cheque to the Kotak Bank for the security of your loan. That cheque was sent to the Kotak Bank’s office situated at Ahmedabad. On default of the loan the Kotak Bank has produced that cheque for the encashment in Ahmedabad Branch. 

After dishonour of that cheque the Kotak Bank has filed a complaint against you under Section 138 NI Act. The facts of your case suggest that there is no impediment or illegality in filing that case in Ahmedabad court.

The cheque bounce case is to be filed at the place where the cheque has been dishonoured. Territorial jurisdiction in respect of cheque bounce case is where the complainant (holder of cheque) keeps or maintains his bank account. That cheque was dishonoured at Ahmedabad where the complainant maintains bank account.

So, the forum and place of action are correct. Therefore, the court will not interfere in this matter. This case will not be transferred to the place where you are living. No need to file any transfer petition.

You have an alternate remedy i.e. compromise this issue with the bank You should approach the Bank and try to settle this issue with mutual agreement. In the settlement process, you should insure the bank that you’ll pay the outstanding along with the cost of litigation. If the Bank accepts your deal, then it may withdraw the case on the basis of that settlement. Otherwise you have to face the trial.