Writ Petitions Not Maintainable Against Private Companies in Banking

In S. Shobha v. Muthoot Finance Ltd., the Supreme Court of India clarified that a private financial institution, such as Muthoot Finance, is not automatically considered a "State" under Article 12 of the Constitution, even if it is regulated by the Reserve Bank of India (RBI). Consequently, it is generally not subject to writ jurisdiction under Article 226, unless it is performing a public function.

Jurisdiction in Cheque Dishonour Cases Lies Where the Payee’s Account is Maintained, Not Where the Cheque is Presented

The Supreme Court, in Prakash Chimanlal Sheth v. Jagruti Keyur Rajpopat [2025: INSC: 897], has reiterated the principle governing territorial jurisdiction for an offence of cheque dishonour under Section 138 of the Negotiable Instruments Act, 1881 (NI Act). Jurisdiction lies with the court within whose limits the bank branch is situated where the payee maintains the account through which the cheque was presented for collection.