Supreme Court forms panel to expedite cheque bounce cases

The Supreme Court (SC) on Wednesday set up a panel to suggest specific steps for quick disposal of more than 35 lakh cheque bounce cases across India.

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The Supreme Court (SC) on Wednesday set up a panel to suggest specific steps for quick disposal of more than 35 lakh cheque bounce cases across India.

Constituted under the chairmanship of a former Bombay High Court judge, RC Chauhan, the panel has been asked submit a report in three months suggesting measures to deal with the problem that has been clogging the subordinate courts.

For quick disposal of more than 35 lakh cheque bounce cases, the apex court has set up a committee
RC Chauhan, ex-Judge of the Bombay High Court, to head the panel

Besides Justice Chauhan, other members would be officers of the department of financial services not below the rank of additional secretary, officers of judiciary, corporate affairs, expenditure, home affairs, Reserve Bank of India (RBI) and the Indian Banking Association, to be nominated by its chairman, representative of the National Legal Services Authority (NALSA) and Solicitor General or his nominee.

The court had earlier pointed out that cheque bounce cases contributed to about 30 per cent of pendency of cases in the judicial system and when dishonour of cheques under the Negotiable Instruments Act was criminalised in 1988, no judicial impact assessment was done.

The order came from a five-judge bench headed by Chief Justice of India Sharad Arvind Bobde which had last week termed the problem as “grotesque” and said that the Central Government should come up with a law to create additional courts for a particular period of time to deal with dishonour of cheque cases.

Article 247 of the Constitution gives power to Parliament to establish certain additional courts for the better administration of laws made by it or of any existing laws with respect to a matter enumerated in the Union List.

On Wednesday, Solicitor General Tushar Mehta told the top court that the Central Government has “in-principle accepted” the need for creating additional courts to deal with such cases.

The top court had on March 5 last year registered a suo motu case and decided to evolve a “concerted” and “coordinated” mechanism for expeditious disposal of cheque bounce cases.

A five-judge Bench, headed by Chief Justice of India SA Bobde, had last week termed the problem of cheque bounce cases as grotesque

It had said the Centre should come up with a law to create additional courts for a particular period of time to deal with such cases

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