Dishonour of Cheque under S. 138 NI Act: A Test of Jurisdiction in CIT vs. Bang Overseas Ltd.
tax clat_ug intermediate real_caseYe case, students, aapko ek baar padha hai na? CIT vs. Bang Overseas Ltd. (2019) 84 taxmann.com 1 (SC). Aise hi, dishonoured cheque wali baat. Lekin, aapko kaise lagta hai, ye judgment thik hai ya nahi? SC ne court kaa jurisdiction test kiya hai, kyunki kuch case mein, dishonoured cheque ke case mein, CIT ne 2 FSR (Factors for Sentence under Section 138 NI) ko apply nahin kiya.
Maine socha, ye judgment theek hai, kyunki SC ne clear kaha hai ki, FSR ki apply karne ki decision karna hame court ke paas hai.
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Bhai, in CIT vs. Bang Overseas Ltd., Hon'ble SC observed that Sec 138 of NI Act is a special law, and thus, court acquiring jurisdiction under this Act must have territorial jurisdiction. So, if cheque is drawn in one town but dishonoured in another, court with jurisdiction over cheque dishonour location will decide the case, not where cheque was drawn.
Bhai, don't worry about this case. It's a complex issue but we need to break it down. First, understand the SC's judgment that the magistrate's court has power to try the case as per S. 138 of the NI Act. It's a landmark case and we need to study it from a jurisdictional point of view. Keep reading and we'll discuss more!