Section 142 NI Act: Cognizance of offences
Negotiable Instruments Act, 1881
Section 142 NI Act at a Glance
Section 142 NI Act sets the procedure for taking cognizance of a cheque dishonour offence under Section 138 NI Act. It requires a written complaint within 1 month of the cause of action and specifies which court has jurisdiction.
Section 142 NI Act Bare Act Text
142. Cognizance of offences.
(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974),—
(a) no court shall take cognizance of any offence punishable under section 138 except upon a complaint, in writing, made by the payee or, as the case may be, the holder in due course of the cheque;
(b) such complaint is made within one month of the date on which the cause of action arises under clause (c) of the proviso to section 138:
Provided that the cognizance of a complaint may be taken by the Court after the prescribed period, if the complainant satisfies the Court that he had sufficient cause for not making a complaint within such period;
(c) no court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under section 138.
(2) The offence under section 138 shall be inquired into and tried only by a court within whose local jurisdiction,—
(a) if the cheque is delivered for collection through an account, the branch of the bank where the payee or holder in due course, as the case may be, maintains the account, is situated; or
(b) if the cheque is presented for payment by the payee or holder in due course, otherwise through an account, the branch of the drawee bank where the drawer maintains the account, is situated.
Explanation.—For the purposes of clause (a), where a cheque is delivered for collection at any branch of the bank of the payee or holder in due course, then, the cheque shall be deemed to have been delivered to the branch of the bank in which the payee or holder in due course, as the case may be, maintains the account.
Amendments to this section
- Section 142 numbered as sub-section (1) thereof by Act 26 of 2015, s. 3 (w.e.f. 15-6-2015).
- Ins. by Act 55 of 2002, s. 9 (w.e.f. 6-2-2003).
- Ins. Act 26 of 2015, s. 3 (w.e.f. 15-6-2015).
Section 142 NI Act in Simple Words
Section 142 NI Act lays down the rules for how a court takes cognizance and which court has jurisdiction to try an offence under Section 138 NI Act. Section 142(1) NI Act overrides anything to the contrary in the Code of Criminal Procedure, 1973. The Act still refers to the Code of Criminal Procedure, 1973, which the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) replaced from 1 July 2024. Under Section 142(1)(a) NI Act, no court can take cognizance of an offence punishable under Section 138 NI Act except upon a written complaint made by the payee or by the holder in due course of the cheque.
Under Section 142(1)(b) NI Act, the written complaint must be made within 1 month of the date on which the cause of action arises under clause (c) of the proviso to Section 138 NI Act, which is when the drawer fails to pay the cheque amount within 15 days of receiving the written demand notice. The proviso to Section 142(1)(b) NI Act sets an exception to this deadline: the court may take cognizance of a complaint after the 1-month period if the complainant satisfies the court that the complainant had sufficient cause for not making the complaint within that period. Under Section 142(1)(c) NI Act, no court lower than a Metropolitan Magistrate or a Judicial Magistrate of the first class can try an offence punishable under Section 138 NI Act.
Section 142(2) NI Act fixes territorial jurisdiction and states that an offence under Section 138 NI Act can be inquired into and tried only by the court specified in its two clauses. Under Section 142(2)(a) NI Act, if the cheque is delivered for collection through an account, the case must be inquired into and tried by the court within whose local jurisdiction the branch of the bank where the payee or holder in due course maintains the account is situated. Under Section 142(2)(b) NI Act, if the cheque is presented for payment by the payee or holder in due course otherwise than through an account, the case must be inquired into and tried by the court within whose local jurisdiction the branch of the drawee bank where the drawer maintains the account is situated.
The Explanation to Section 142(2) NI Act clarifies clause (a): even if the payee or holder in due course delivers a cheque for collection at any other branch of the bank of the payee or holder in due course, the cheque is legally deemed to have been delivered to the branch in which the payee or holder in due course maintains the account. Act 55 of 2002 inserted the proviso to clause (b) from 6 February 2003. Act 26 of 2015 numbered the old section as sub-section (1) and inserted sub-section (2), from 15 June 2015.
When Section 142 NI Act Applies
- A written complaint must be made by the payee or the holder in due course of the cheque (Section 142(1)(a) NI Act).
- The complaint must be filed within 1 month of the date on which the cause of action arises under clause (c) of the proviso to Section 138 NI Act, which is after the 15-day notice payment period expires without payment (Section 142(1)(b) NI Act).
- A court may take cognizance after the 1-month period if the complainant satisfies the court that there was sufficient cause for the delay (proviso to Section 142(1)(b) NI Act).
- The offence can only be tried by a court not inferior to a Metropolitan Magistrate or a Judicial Magistrate of the first class (Section 142(1)(c) NI Act).
- When a cheque is delivered for collection through an account, only the court where the bank branch in which the payee or holder in due course maintains the account is situated has jurisdiction, even if the cheque was deposited at another branch of that bank (Section 142(2)(a) NI Act and Explanation).
- When a cheque is presented for payment otherwise than through an account, only the court where the branch of the drawee bank in which the drawer maintains the account is situated has jurisdiction (Section 142(2)(b) NI Act).
Example of Section 142 NI Act
FAQs on Section 142 NI Act
What is Section 142 NI Act?▼
Section 142 NI Act is the procedural provision that governs how a court takes cognizance of a cheque dishonour offence under Section 138 NI Act and which court has territorial jurisdiction to try the case. It specifies who can file the written complaint, the 1-month filing deadline, the minimum rank of the trying court, and the bank branch location that decides jurisdiction.
Who can file a complaint for cheque dishonour under Section 142(1)(a) NI Act?▼
Only the payee or the holder in due course of the cheque. Section 142(1)(a) NI Act states that no court can take cognizance of an offence under Section 138 NI Act except upon a written complaint made by the payee or the holder in due course.
What is the time limit to file a complaint in court under Section 142(1)(b) NI Act?▼
1 month. Under Section 142(1)(b) NI Act, the written complaint must be made within 1 month of the date on which the cause of action arises under clause (c) of the proviso to Section 138 NI Act, which is when the 15-day notice period expires without payment.
Can a court accept a cheque dishonour complaint filed after the 1-month deadline under Section 142 NI Act?▼
Yes. Under the proviso to Section 142(1)(b) NI Act, the court may take cognizance of a complaint after the 1-month period if the complainant satisfies the court that the complainant had sufficient cause for not making the complaint within that period.
Which court has territorial jurisdiction when a cheque is deposited into a bank account for collection under Section 142(2)(a) NI Act?▼
The court where the bank branch in which the payee or holder in due course maintains the account is situated. Under the Explanation to Section 142(2) NI Act, this rule applies even if the cheque was physically delivered for collection at a different branch of that bank.
Which court has territorial jurisdiction when a cheque is presented for payment otherwise than through an account under Section 142(2)(b) NI Act?▼
The court where the branch of the drawee bank in which the drawer maintains the account is situated. Section 142(2)(b) NI Act gives jurisdiction to that court whenever the cheque is presented for payment otherwise than through an account.
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Sources: Bare Act Text, Negotiable Instruments Act, 1881 (India Code) ·