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In a landmark judgment dated November 28, 2025 (2025 INSC 1362), the Supreme Court of India clarified that exclusive jurisdiction in cheque bounce cases under Section 138 NI Act lies with the court where the payee’s or holder’s bank account (home branch) is maintained. Overruling conflicting precedents, the Court emphasized that the 2015 Amendment’s Section 142(2)(a) and its Explanation were designed to prevent forum shopping and protect accused persons from harassment. By directing High Courts to uniformly adopt this interpretation, the ruling restores certainty, streamlines litigation, and strengthens the NI Act’s role as a swift commercial dispute resolution mechanism.
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