Special Courts For Cheque Bounced Cases Veerappa Moily

Special Courts For Cheque Bounced Cases- Veerappa Moily

The Union Law and Justice Minister, Dr. Veerappa Moily has stressed the need for immediate setting up of special courts to deal with surmounting cases under section 138 of the Negotiable Instruments Act. Dr. Moily in his letter to the Finance Minister has said that there are about 38 lakh cheque bouncing cases pending in the trial courts and this needs to be speedily addressed by setting up special courts.

The Law Commission in its report had recommended that pendency of large number of cases relating to cheque bouncing tarnish the image of business. Cases relating to dishonoured cheques affect business within and outside the country. It said cheque bouncing cases need to be speedily disposed of through this measure, lest litigants may lose faith in the judicial system. Speedy disposal of such cases would instil confidence.

The Supreme Court in its judgement had directed that whenever any legislation is introduced either in Parliament or in the State Legislatures, it should be accompanied by a Judicial Impact Assessment highlighting the increase the legislation which would impose upon the court system. It also directed the Government to make Judicial Impact Assessment an essential component of the Financial Memorandum of legislative proposals. To study various aspects of the Supreme Court direction, the government had appointed a committee to recommend methodology and infrastructure for instituinalising Judicial Impact Assessment in the law-making process, so that the government can anticipate the likely cost of implementing legislation for timely justice to litigants.