The Central Government in exercise of the powers conferred under Section 470(1) of the Companies Act, 2013, passed an order called the Companies (Removal of Difficulties) Second Order, 2014 dated June 2, 2014 to the effect that the Company Law Board shall exercise the jurisdiction, powers, authority and functions under Section 74(2) of the Act until a date is notified by the Central Government under Section 434(1) of the Act. - Gazette Notification dated June 6, 2014
In a landmark judgment, Hon'ble Supreme Court went to some length to define the cause of action and jurisdiction of cases under Section 138 of the Negotiable Instruments Act. While deciding in 2014 STPL(Web) 499 SC 1, Dashrath Rupsingh Rathod Vs. State of Maharashtra & Anr., the Hon'ble court said, one of the main issues faced by the court (a) from which stage do we consider a offence under Section 138 to have been caused (b) Where would the jurisdiction of the court lie if the cheque was drawn in city A and presented dishonored in City B ? After discussion on various past decisions, the Hon'ble court finally affirmed, " To sum up: (i) An offence under Section 138 of the Negotiable Instruments Act, 1881 is committed no sooner a cheque drawn by the accused on an account being maintained by him in a bank for discharge of debt/liability is returned unpaid for insufficiency of funds or for the reason that the amount exceeds the arrangement made with the bank. (...
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