Understand the Origin of the “Check Case” Correctly

“Checks” are one of the financial instruments that are popular in doing business and paying debts. In addition, using checks is an important financial instrument in the business world and various transactions. However, there are still frequent misunderstandings about the locations related to checks, especially the matter of “check cashing locations” and “locations where banks refuse to pay checks”, which many people misunderstand to be the same place, when in fact they are different locations. Today, Wongsakorn Law Office will help you clear up more doubts about checks.

What does the term “check issuance in which area” mean?

The Supreme Court’s decision No. 2070/2543 (abbreviation) states that an offense under Section 4 of the Act on Offenses Relating to the Use of Checks B.E. 2534 (1991), issuing a check in which area is considered a criminal offense committed in that area, which is continuous with the offense in the area where the bank refused to pay.

The defendant issued a check according to the lawsuit in Bang Ban District, which is under the investigation jurisdiction of the investigation officer of Bang Ban Police Station. And the bank that issued the check refused to pay in the area of ​​Phra Nakhon Si Ayutthaya District, which is under the investigation jurisdiction of the investigation officer of Phra Nakhon Si Ayutthaya Police Station. It can be considered that the offense in this case was committed in Bang Ban District, which is a continuation of the offense in Phra Nakhon Si Ayutthaya District, Phra Nakhon Si Ayutthaya Province. The investigation officers of Bang Ban Police Station and Phra Nakhon Si Ayutthaya Police Station have the authority to investigate this case. When the injured party filed a complaint with the investigation officer of Bang Ban Police Station and the investigation officer of Bang Ban Police Station conducted the investigation, this case was properly investigated. The plaintiff has the authority to sue. 

Therefore, according to the Supreme Court Decision No. 2070/2543, the term “issuing a check in which area” means the place where the issuer of the check signed the check and delivered it to the recipient, not the location of the bank to which the check was issued. 

This means that issuing a check has nothing to do with the bank where the account holder opened the account, but depends on the place where the check was signed and delivered to the recipient.

More about “Issuing a Check”

What does “Issuing a Check” mean in law?

“Issuing a Check” means that the drawer (account holder) signs the check and delivers the check to the recipient.

Where is the place considered to be the issue of a check?

The place where the check is signed and delivered to the recipient is not the location of the bank that issued the check (i.e. the bank where the account holder has an account).
For example, if Mr. A signs a check and delivers it to Company B in Bangkok, but Mr. A’s account is at the Phuket branch of the bank, the place of issue of the check is still Bangkok, not Phuket.

In a case of a bounced check, “the cause of action has arisen” according to the criminal law.

A bounced check case is a criminal offense under the Act on Offenses Arising from the Use of Checks B.E. 2534.

And the place can be determined as “The value of the case” can be in 2 main cases:

1️⃣ Place of issue of the check

Refers to the place where the drawer signs and gives the checks to the recipient

2️⃣ Place of rejection of the check

Refers to the place where the bank refuses to pay when the recipient cashes the check

Therefore, the court with jurisdiction can be

✅ The court in the district where the check was issued

✅ The court in the district where the bank refuses to pay

Examples of common misunderstandings

❌ “The bank where the check was rejected” and “place of cashing” are the same place

✅ Truth: The bank where the check was rejected is the bank from which the check must be collected, not the bank from which the recipient cashes the check

For example,

• Mr. A opened an account at the Bangkok branch of the bank.
• Later, Mr. A issued a check to Mr. B and gave it to him in Chiang Mai province.
• Mr. B cashed the check at a bank in Khon Kaen province.
• The check must be collected from Mr. A’s account at the Bangkok branch of the bank, but when it was sent for collection, it was rejected.

In this case,

✔️ Place of issue of the check = Chiang Mai

✔️ Place of rejection of the check = Bangkok

❌ Khon Kaen has no part in the trial of the case

Jurisdiction for filing a check lawsuit

As mentioned, when there is a case of a bounced check Or the check was rejected for payment. The injured party can file a lawsuit in court by considering the location related to the case as follows:

1. Court in the area where the check was issued

📌 is the court in the area where the issuer signed and gave the check to the recipient.

📌 For example, if Mr. A issued a check in Chiang Mai Province, the Chiang Mai Court will have jurisdiction to consider this case.

2. Court in the area where the bank refused to pay.

📌 is the court in the area where the bank that must make payment according to the check is located and where the check was rejected for payment.

📌 For example, if Mr. A has an account at the Bangkok branch of the bank and the bank refuses to pay at the Bangkok branch, the Bangkok Court will have jurisdiction to consider this case.

❌ You cannot file a lawsuit in the court in the area where the recipient of the check cashed if it is not the place where the check was issued or the place where payment was rejected.

Important conclusions

✅ “Where is the check issued” = The place where the issuer signed and gave the check to the recipient.

❌ Not the place where the issuer’s bank is located.

✅ You can file a lawsuit in the court where the check was issued or the court where the check was rejected for payment by the bank.

If you want to use the location of the bank as a cause of action, it should be the case where the check was cashed at that branch of the bank and was rejected for payment in that area.

Wongsakorn Law Office is ready to provide advice on all check cases.

As mentioned above, this is just a legal education. However, there are many problems and cases related to checks, such as bounced checks, check lawsuits, and check collection. This requires a correct understanding of the law and legal process. If you are facing a problem with a check, whether it is a check recipient who has been refused payment or a payer who needs legal advice, Wongsakorn Law Office has expertise in consulting and prosecuting check cases in particular. We are ready to provide legal services to clients to ensure fairness.