Supreme Court: Development of New Proforma of Cheques on the Cards | Criminal Law Attorney in Delhi NCR | Criminal Lawyer in Delhi NCR |
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The Hon’ble Supreme Court in Makwana Mangaldas Tulsidas vs. The State of Gujarat & Anr. S.L.P. (Criminal) No. 5464 of 2016 have issued notices to the Union of India, Registrar Generals of all the High Courts, the Police Department, the Reserve Bank of India, the Indian Bankers Association etc in order to enable the development of a new proforma of cheques which shall include the purpose of payment along with other necessary information in order to facilitate issues with respect to cases relating to cheque bounce under the Negotiable Instruments Act of 1881 (NI Act).
The Hon’ble Court has observed “with ensuring the credibility of cheques, it is equally important that cheques are not allowed to be misused giving cause to frivolous litigation. The Reserve Bank of India may consider developing a new proforma of cheques so as to include the purpose of payment, along with other informations mentioned above to facilitate adjudication of real issues”.
The Hon’ble Court has observed “ Despite many changes brought through legislative amendments and various decisions of this court mandating speedy trial and disposal of these cases, the Trial Courts are filled with large number of pendency of these cases. A recent study of the pending cases, reflects pendency of more than 35 lakh, which constitutes more than 15 percent of the total criminal cases pending in the District Courts. Further, there is a steady increase in the docket burden”.
The Hon’ble Court while passing the order have relied upon Indian Bank Association & others v. Union of India and Ors., (2014) 5 SCC 590 and Meters and Instruments Private Limited and Anr. v. Kanchan Mehta, (2018) 1 SCC 560.
The Hon’ble Court has further ordered i.e.” in terms of the signed order, let the matter be registered separately as Suo Moto Writ Petition (Criminal) with the caption ‘Expeditious trial of cases under Section 138 of N.I. Act, 1881”.
Thus, it seems that the time has come whereby we can see now proforma of cheques coming with new fields carrying detailed descriptions with respect to the reason behind their issue. The same would also give a detailed insight with respect to the entire transaction which had taken place between the parties and further enable the Courts to expedite the process of taking cognizance on the cases related to cheque bounce under Section 138 of the Negotiable Instruments Act of 1881 (NI Act) and issuing summons to the accused persons.
The case is next listed for hearing on April 18, 2020.
Authored By: Adv. Anant Sharma