The Madurai Bench of the Madras High Court has issued new guidelines to ensure the swift resolution of cheque bounce cases under the Negotiable Instruments Act, 1881 (NI Act). These directions are based on previous rulings of the Supreme Court, which has repeatedly emphasized the need for faster disposal of such cases.
Why the Guidelines Were Issued
Justice N Anand Venkatesh issued the order while hearing a case that had been pending in a trial court for almost three years. The court observed that magistrate courts have been burdened with cheque bounce cases for a long time, leading to significant delays. Such delays defeat the purpose of Section 138 of the NI Act, which is meant to ensure quick action against dishonored cheques.
The Supreme Court has previously tried to address these delays through various orders. In 2021, it even took suo motu action (self-initiated legal proceedings) in a case titled In Re: Expeditious Trial of Cases Under Section 138 of NI Act, 1881. However, the Madras High Court noted that despite these orders, there was little change on the ground due to a lack of strict implementation.
Key Directives of the High Court
To resolve this issue, the High Court compiled past Supreme Court rulings and issued clear guidelines for trial courts handling cheque bounce cases. These new rules will be in effect from March 3, 2024, until further practice guidelines are issued.
Some of the key directives include:
- The examination-in-chief, cross-examination, and re-examination of the complainant must be completed within three months from the start of the trial.
- Adjournments should be avoided and granted only in exceptional cases, with a penalty imposed for unnecessary delays.
- Trial courts must make all efforts to complete proceedings within the time limit set under Section 143(3) of the NI Act.
- Copies of this ruling will be sent to all Principal District Judges in Tamil Nadu to ensure judicial magistrates are aware of the new guidelines.
Use of Technology for Faster Summons
Justice Venkatesh also recommended the use of the National Service and Tracking of Electronic Processes (N-STEP) to issue summonses in cheque bounce cases. This system, already in use for civil cases, allows electronic delivery of summons and helps avoid unnecessary delays. The judge referred the matter to the Chief Justice to consider extending N-STEP for cheque bounce cases under the NI Act.
Impact of the Guidelines
These new measures aim to clear the backlog of pending cases and ensure timely justice for victims of cheque fraud. By setting clear deadlines and promoting the use of technology, the High Court hopes to make the legal process more efficient and effective.
This decision is expected to bring much-needed relief to businesses and individuals who struggle with delayed cheque bounce cases. If properly implemented, it could set a precedent for courts across India to improve legal efficiency in similar cases.
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