SC to evolve mechanism for expeditious disposal of cheque bounce cases

With over 35 lakh cheque bounce cases pending in district courts, the Supreme Court has decided to evolve a "concerted" and "coordinated" mechanism for expeditious disposal of such cases.

The apex court has registered a suo motu case (on its own) in this regard and sought responses from the Centre and other stakeholders, including the Reserve Bank of India.

A bench of Chief Justice S A Bobde and Justice L N Rao, which passed the order while dealing with a plea related to dishonour of two cheques in January 2005, noted that a dispute of this nature has remained pending for 15 years in various courts and taken judicial time.

"Despite many changes brought through legislative amendments and various decisions of this court mandating speedy trial and disposal of these cases, the trial courts are filled with a large number of pendency of these cases," the bench said in its March 5 order.

"A recent study of the pending cases, reflects pendency of more than 35 lakh, which constitutes more than 15 percent of the total criminal cases pending in district courts. Further, there is a steady increase in the docket burden," the bench said.

The top court has issued notices to the Centre, registrar general of all high courts, director general of police of all states and union territories, member secretary of the National Legal Services Authority, RBI and Indian Bank Association, Mumbai, and asked them to file their response on the issue.

"These are some indicative aspects in addition to what may come on board after hearing the relevant duty-holders. To work out mechanism for expeditious and just adjudication of cases relating to dishonour of cheques, fulfilling the mandate of law and reduce high pendency, various duty-holders like banks, police and legal services authorities may be required to take measures and prepare schemes," the bench said.

"Thus, we find it necessary to hear them for evolving a concerted, coordinated mechanism for expeditious adjudication of these cases as per the legal mandate," it said.

The bench, which appointed senior lawyer Siddharth Luthra and advocate K Parameshwar as amicus curiae to assist it in the matter, has listed the case for hearing on April 16.

The bench noted that dishonour of cheque was criminalised in 1988 and the legislative intent was to "ensure faith in the efficacy of banking operations and credibility in transacting business on cheques."
"It was to provide a strong criminal remedy in order to deter the high incidence of dishonour of cheques and ensure compensation to the complainant," the bench said, adding, "Subsequent amendments in the Act (Negotiable Instrument Act) and the pronouncements of this court reflect that it was always perceived that these cases would be disposed speedily so as to preserve the object of criminalisation of the act."