Supreme Court Forms Committee to Suggest Steps for Expeditious Disposal of Cheque Dishonour Cases

Supreme Court Forms Committee to Suggest Steps for Expeditious Disposal of Cheque Dishonour Cases

 A Constitution Bench of the Supreme Court (SC) constituted a committee headed by former Bombay High Court (HC) Justice RC Chavan to devise steps for expeditious disposal of cases under Section 138 of the Negotiable Instruments Act (NI Act).

On 2 March 2021, the Apex Court stated that "A recent study of the pending cases, reflects pendency of more than 35 lakh, which constitutes more than 15 per cent of the total criminal cases pending in district courts. Further, there is a steady increase in the docket burden."

The SC bench comprising of Chief Justice of India SA Bobde, Justices L Nageswara Rao, BR Gavai, AS Bopanna, and Ravindra Bhat was hearing a suo motu case to examine measures to ensure expeditious trial of cases under Section 138 of the NI Act.

The Committee will have to submit its report to the SC within 3 months from the date of order.

The other members of the Committee as per the order are:

* The Committee shall be headed by the Former HC Judge RC Chavan

* Officer from the Department of Financial Services not below the rank of Additional Secretary.

* Officer from the Department of Justice.

* Officer from the Department of Corporate Affairs

* Officer from the Department of Expenditure

* Member from the Ministry of Home Affairs

* Member nominated by Governor RBI

* Member nominated by IBA chairman

* Member of NALSA appointed as Secretary of the committee

The Top Court granted time till 12 March 2021 to Solicitor General Tushar Mehta to suggest names for the above posts.

It was found by the Court that approximately 35 lakh cheque bounce cases were pending in various Courts across India. The Court had appointed Senior Advocate Siddharth Luthra and Advocate K Parameshwar as amici curiae in the suo motu case.

The Court had also sought responses from the Centre and other stakeholders, including the regulatory body - RBI. Certain recommendations were made by the Centre to the Court regarding the same during the hearing. However, the Court had rejected the suggestions of the Centre. Rather the Court had proposed setting up Additional Courts to quickly hear and decide such cases under the NI Act.

It noted that "While suggestions received are useful and constructive, we find that they need to be worked on carefully so that the alteration and amendments to procedures don't in itself become an impediment to either Courts, the Bar or litigants."

Additional Solicitor General Vikramajit Banerjee had submitted before the Court that the matter requires wide-ranging discussion with various stakeholders and officers and secretaries of various Ministries who will be able to suggest a solution to the problems.

The Top Court accepted his suggestions and it directed the Government to form a committee to deliberate on measures to reduce pendency.