Cheque bounce: Supreme Court points tips for early disposal of circumstances

The Supreme Court at present got here out with a slew of instructions to make sure speedy disposal of cheque bounce circumstances and requested the Centre to amend legal guidelines to make sure clubbing of trials in circumstances that are lodged inside one 12 months in opposition to an individual regarding the identical transaction.

The apex court docket directed all of the excessive courts throughout the nation to subject tips for trial courts to cope with cheque bounce circumstances.

A five-judge bench headed by Chief Justice S A Bobde additional mentioned that the proof in cheque dishonour circumstances can now be tendered by submitting affidavits and there can be no want to look at witnesses bodily.

The bench, additionally comprising Justices L Nageswara Rao, B R Gavai, A S Bopanna and S Ravindra Bhat, requested the Centre to make “suitable amendments” within the Negotiable Instruments Act to make sure that trials in cheque bounce circumstances lodged in 12 months in opposition to an individual will be clubbed collectively into one consolidated case.

It reiterated the sooner resolution and held that trial courts haven’t any “inherent power” to rethink their selections to summon individuals to face trials within the cheque bounce circumstances.

The apex court docket mentioned the problems which haven’t been dealt by it could be thought-about by a committee headed by Justice R C Chavan, former decide of the Bombay High Court.

On March 10, the highest court docket had constituted the committee to submit a report in three months specifying the steps to be taken for early disposal of cheque bounce circumstances throughout the nation.

It mentioned a three-judge bench would now take up the suo motu matter on making certain early disposal of cheque bounce circumstances after eight weeks.

It had earlier termed the pendency of over 35 lakhs cheque bounce circumstances as “grotesque” and steered to the Centre to give you a regulation to create further courts for a selected time period to cope with such circumstances.

On March 5 final 12 months, the highest court docket had registered a suo motu case and determined to evolve a “concerted” and “coordinated” mechanism for expeditious disposal of such circumstances.

Subscribe to Mint Newsletters * Enter a legitimate e-mail * Thank you for subscribing to our publication.