The Hindu : National : Fast-track cheque bounce cases: panel

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Tuesday, Nov 25, 2008
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Fast-track cheque bounce cases: panel

J. Venkatesan

NEW DELHI: With a view to reducing the burden on trial courts, the Law Commission has recommended the setting up of fast track courts to decide about 38 lakh cheque bounce cases filed under Section 138 of the Negotiable Instruments Act.

Business credibility suffers

In its 213rd report submitted to Union Law Minister H.R. Bhardwaj, the commission, headed by Justice A.R. Lakshmanan, said: “Due to pendency of a large number of dishonoured cheques [over 38 lakh], the entire credibility of the business within and outside the country is suffering a serious setback.”

The commission said: “Dishonouring of a cheque by the bank causes incalculable loss, injury and inconvenience to the payee and the credibility of issuance of cheque is also being eroded to a large extent. The very purpose of the amendments in the [Negotiable Instruments] Act for speedy disposal of dishonoured cheque cases is being lost. Further, due to inadequate number of courts and judges there was inordinate delay in disposal of these cases.”

The commission took up this issue suo motu in view of these circumstances.

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