Committee To Be Formed To Take Steps For Speedy Disposal Of Cheque Bounce Cases

KEY TAKEAWAYS

• SC has recently constituted a committee to take steps for speedy disposal of cheque bounce matters.
• The committee shall be headed by Former Bombay HC Judge R.C Chavan including 10 other member heads from various departments.
• The Committee has to submit the report within 3 months suggesting measures to curb the problem of pending cheque bounce cases in subordinate courts.
• The order was passed by a Constitution bench of SC headed by CJI S.A Bobde.

WAS THERE A NEED TO FORM A COMMITTEE ?

• Cheque bounce cases contributes up to 30% of pendency in judicial system.
• The court had reported that over 35 lakh cases are still pending across all the subordinate courts in India.

WHAT ARE CHEQUE BOUNCE MATTERS ?

• Cheque Bounce matters are dealt u/s. 138 of Negotiable Instruments Act.
• Section 138 provides that when the cheque is dishonored due to insufficient funds or any of the prescribed reasons, the defaulter can be punished.
• It may result in imprisonment for a term extended to 2 years / with fine up to twice the amount of cheque/ both.

APEX COURT’S TAKE ON THE MATTER

• It was observed that the petition was initiated suo moto by the court to consider the great delays in disposal of cheque bounce matters.
• The apex court remarked the situation as ‘grotesque.’
• The apex court also suggested that additional courts can be formulated for particular period to deal with these cases.

Is the pendency of cases in our country due to lack of additional courts or are there other reasons ? Let us know in the comments section below!