Golla Naraesh Kumar Yadav etc. v. Kotak Mahindra Bank 2025 INSC 1387 - CrPC - Transfer Of NI Act Cases

Code of Criminal Procedure 1973 - Section 406; Negotiable Instruments Act 1881 - Section 142 - Supreme Court doubts the correctness of the Judgment in Shri Sendhur Agro & Oil Industries vs. Kotak Mahindra Bank Ltd which held that mere convenience or inconvenience of the parties may not by itself be sufficient enough to pray for transfer - Referred to Larger Bench - Prayers for transfer are not agnostic to inconvenience/hardship and ought to be tested on the scale of relative convenience/inconvenience of all stakeholders including witnesses. (Para 17) Relative convenience/inconvenience needs to be viewed from myriad angles. The Court needs to address the following questions :- a. Does the continuation of proceedings in a far-off court adversely affect the accused’s fair trial rights and render an unjust advantage to the complainant? b. Does a shift of venue cause undue hardship to the complainant, denying him the right to prosecute the offender at a place which the law of the land prescribes? c. Does such transfer cause convenience/inconvenience to witnesses who may be called upon to depose in the case? Upon taking a holistic view of all these aspects, the Court would come to a conclusion whether the healing balm of transfer is necessary to ensure a level-playing field and eschew an unfair battle between the parties expedient for the ends of justice (Para 20) [Referred to Nahar Singh Yadav v. Union of India, (2011) 1 SCC 307]

Negotiable Instruments Act 1881 - Section 142 ; Code of Criminal Procedure 1973 - Section 406 - By locating jurisdiction at the payee’s bank where the cheque is deposited for clearance through the latter’s account, the amended provision reflects a statutory inclination to facilitate the payee’s convenience in prosecuting the complaint - The legislative intent of these amendments however was not to take away the jurisdiction of the High Court or Supreme Court to transfer a complaint under Section 138 of N.I. Act in the event such transfer was expedient to meet the ends of justice. (Para 11-12)

Negotiable Instruments Act 1881 - Section 138 - Section 138 of the N.I. Act was incorporated in order to promote financial discipline and credibility of banking systems. Penal liability was introduced to ensure confidence in transactions through negotiable instruments. It is essentially an offence against an individual, compoundable at his option, and not against the State. The nature of the offence is quasi-criminal and does not fall within the species of grave crimes like murder, rape and corruption etc. which may be termed as crimes against the society. (Para 19)