In view of the increasing number of check bounce cases in the country, the Supreme Court has taken a good initiative, which is expected to promptly settle the cases that have been going on in the courts for years. The Supreme Court has taken cognizance of this matter (Suo Motu) and is trying to find a solution. A bench of Chief Justice SA Bobde and L Nageswara Rao has sought answers from all the high courts of the country on this matter.

All the high court sought answers

Supreme Court has sought answers from all the High Courts on the mechanism for immediate disposal of check bounce cases. DGP of the states has also been asked to report on this matter within 4 weeks. In this case, help will also be taken from the Home Departments of the States, Finance Ministries of the Center.

Check bounce cases are disposed of under section 138 of the Negotiable Instruments Act (NI Act). In March this year, the Supreme Court had taken cognizance of itself to prepare a mechanism for speedy disposal of such cases. A preliminary report was prepared by Amicus Curiae and senior advocate Siddharth Luthra. An answer was sought from all the High Court on this report.

Only Madhya Pradesh High Court, Rajasthan High Court, and Sikkim High Court have submitted answers on this report. Therefore, the Supreme Court has asked all the High Court to reply on this report within 4 weeks.

Why did the Supreme Court take cognizance?

The Supreme Court itself had to take cognizance of the cases of check bounce, that is because 40 lakh check bounce cases are pending in different courts of the country. Of which, in 18 lakh cases, the accused are not even aware. According to the law, check bounce cases should be settled within 6 months, but often these cases continue for 3-4 years, which wastes a lot of time in the courts.


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