Devendra Kishanlal Dagalia vs Dwarkesh Diamonds Pvt Ltd And Ors

The Supreme Court held that the jurisdiction of the Magistrate under Section 138 of the Negotiable Instruments Act is determined by the location of the transaction, not merely by the issuance of a legal notice. The Court found that the High Court erred in setting aside the Sessions Court's order which had reinstated the complaints after the Magistrate's initial dismissal for lack of jurisdiction. The Court emphasized that jurisdiction must be established based on the facts of the case, including where the transaction occurred, and remitted the matter back to the Magistrate for further proceedings.