Question

Cheque bouncing cases charged U/s. 138 of Negotiable Instruments Act is trialed by

• A. Bank Tribunal
• B. Consumer Forum
• C. Magistrate Court
• D. Sessions court

Hint:

Remember that while a cheque bouncing case has civil implications (recovery of money), the proceeding under Section 138 is criminal in nature. This is why it is tried by a criminal court (Magistrate's Court) and not a civil court or tribunal.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
Section 138 of the Negotiable Instruments Act, 1881, makes the dishonor of a cheque for insufficiency of funds a criminal offence. The Act specifies the court that has jurisdiction to try these offences.

Step 2: Detailed Explanation:
Section 142 of the Negotiable Instruments Act deals with the cognizance of offences under Section 138. It states that notwithstanding anything contained in the Code of Criminal Procedure, 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.
Both the Metropolitan Magistrate (in metropolitan areas) and the Judicial Magistrate of the First Class (in other areas) belong to the category of Magistrate's Courts.
- A Bank Tribunal (like the Debt Recovery Tribunal) deals with civil recovery of debts for banks, not criminal cases like cheque bouncing.
- A Consumer Forum deals with consumer disputes, which is a different remedy.
- A Sessions Court is higher in the hierarchy and tries more serious offences.

Step 3: Final Answer:
Cases under Section 138 of the Negotiable Instruments Act are tried by a Magistrate Court (specifically, a Judicial Magistrate of the First Class or a Metropolitan Magistrate).