Case Note & Summary
The Supreme Court of India, in a suo motu writ petition, addressed the significant backlog and delays in the disposal of cases filed under Section 138 of the Negotiable Instruments Act, 1881, concerning dishonour of cheques. The Court initiated this proceeding due to concerns over the large number of pending cases, exemplified by a specific Special Leave Petition involving cheques dishonoured in 2005 that had remained unresolved for 16 years. A Division Bench, later expanded to a larger bench, examined the issue with the assistance of appointed amici curiae and responses from various stakeholders including the Union of India, High Courts, police, and banking institutions. The legal framework involved Chapter XVII of the Negotiable Instruments Act, 1881, inserted in 1989, and subsequent amendments in 2002 that added Sections 143 to 147 to expedite trials through summary procedures. Despite these measures, pendency persisted, with over 35 lakh cases under Section 138 pending as of 2019, adversely affecting the criminal justice system. The amici curiae identified seven major issues contributing to delays, including service of summons, statutory amendments, summary trials, attachment of bank accounts, applicability of Section 202 of the Code of Criminal Procedure, 1973, mediation, and the inherent jurisdiction of Magistrates. During hearings, the Court focused on specific procedural aspects, such as the mechanical conversion of summary trials to summons trials under Section 143 of the Negotiable Instruments Act, 1881, and the mandatory inquiry under Section 202 of the Code of Criminal Procedure, 1973, for accused residing beyond jurisdiction. The Court analyzed that the conversion of trials without recording reasons defeated the purpose of expedited disposal and directed High Courts to issue practice directions to ensure Magistrates record reasons before such conversion. Additionally, the Court referenced judicial pronouncements on Section 202 to highlight its role in delays. To address broader issues, the Court formed a committee chaired by a former High Court judge to consider suggestions like attachment of bank accounts, pre-summons mediation, and creation of additional courts. The decision involved accepting suggestions from the amici curiae and stakeholders, with directions for committee deliberations and High Court actions to streamline trials and reduce pendency.
Headnote
A) Criminal Procedure - Summary Trials - Conversion to Summons Trial - Negotiable Instruments Act, 1881, Section 143 - The Supreme Court addressed the mechanical conversion of summary trials to summons trials in cases under Section 138 of the Negotiable Instruments Act, 1881, which contributes to delays. The Court held that Magistrates must record cogent reasons before such conversion under the second proviso to Section 143 to ensure quick disposal, as mandated by the Act. The High Courts were directed to issue practice directions to enforce this requirement. (Paras 8-9) B) Criminal Procedure - Inquiry Before Issue of Process - Mandatory Inquiry for Accused Beyond Jurisdiction - Code of Criminal Procedure, 1973, Section 202 - The Court noted the amendment to Section 202 of the Code of Criminal Procedure, 1973, making inquiry mandatory before issuing process when the accused resides beyond the court's jurisdiction, referencing Vijay Dhanuka & Ors. v. Najima Mamtaj & Ors. This issue was identified as contributing to delays in cases under Section 138 of the Negotiable Instruments Act, 1881. (Para 10)
Issue of Consideration
Reasons for delay in disposal of cases under Section 138 of the Negotiable Instruments Act, 1881 and measures to expedite trials
Final Decision
The Supreme Court accepted suggestions from the Amici Curiae, directed High Courts to issue practice directions for recording reasons before converting summary trials to summons trials under Section 143 of the Negotiable Instruments Act, 1881, and formed a committee to consider further measures including attachment of bank accounts and pre-summons mediation.
Law Points
- Summary trial procedure under Section 143 of Negotiable Instruments Act
- 1881
- mandatory recording of reasons for conversion to summons trial
- inquiry under Section 202 of Code of Criminal Procedure
- 1973
- service of summons
- statutory amendments
- attachment of bank accounts
- mediation
- inherent jurisdiction of Magistrate
