The Supreme Court has recently proposed the establishment of fast-track courts to expedite the resolution of dishonoured cheque cases. This plan arose from an earlier suggestion to form a committee that would assess the pending cheque bounce cases. The following article highlights the key points and potential strategies for this endeavour.
Supreme Court’s Proposal
The Supreme Court has advocated for the creation of fast-track courts under Section 138 of the Negotiable Instruments Act, 2018. It calls on the government to utilise its power and constitutional obligation, per Article 247, to establish additional courts for better legal administration, specifically concerning the Negotiable Instruments Act.
Article 247: A Constitutional Power
Article 247 prepares the grounds for Parliament to create more courts for superior law administration related to laws it has enacted. This power targets matters enumerated in the Union List.
The Backlog of Dishonoured Cheque Cases
Pending dishonoured cheque cases comprise between 30 and 40 percent of all pending cases in trial courts. These types of cases also make up a significant portion of the backlog in High Courts.
Negotiable Instruments Explained
Negotiable instruments are signed documents that promise a specific payment amount to a specified person or assignee. They’re transferable and give the holder the freedom to use funds as cash or according to their preference. Promissory notes, bills of exchange, and cheques all fall under the negotiable instruments category.
Understanding Dishonoured Cheques
A cheque is honoured if the bank pays the amount to the payee. Conversely, if the bank declines to pay, the cheque is termed dishonoured. This denial constitutes a criminal offence, punishable by up to two years imprisonment, a financial penalty, or both.
Pendency of Cases in Judiciary
The Economic Survey 2018-19 cites approximately 3.5 crore outstanding cases within the judicial system, predominantly in district and subordinate courts. Over 87.54% of total pending cases lie in these courts, with more than 64% of all cases remaining unresolved for over a year.
Reforms Suggested
Several reforms have been proposed to tackle this issue, including increasing the number of working days, establishing Indian Courts and Tribunal Services to handle administrative aspects of the legal system, and enhancing technology use for court efficiency. Adequate Case and Court Management, utilising ADR mechanisms, Lok Adalats, Gram Nyayalayas, and setting up fast-track courts are also part of the reform suggestions.
Way Forward:
To improve the justice delivery system in India, there needs to be comprehensive introspection through discussion, debate, and consultation to identify causes of delays. The effective implementation of judicial reforms can expedite justice delivery and elevate India’s rank in various global judicial process reports.
