India's Courts Grapple with Cheque Dishonour Tsunami: Supreme Court Demands Urgent Action

The Supreme Court of India has once again underscored the critical need to address the alarming backlog of cheque dishonour cases, which currently stands at over 35 lakh nationwide. In a significant move, the apex court has directed all states and Union Territories to submit comprehensive status reports within three weeks, detailing the measures they have implemented or plan to undertake to expedite the resolution of these crucial financial disputes.

This latest directive from a bench comprising Justices B R Gavai, C T Ravikumar, and Sanjay Karol highlights the judiciary's persistent efforts to tackle a challenge that not only clogs the legal system but also significantly impacts the ease of doing business and the trust in financial transactions.

The court's concern stems from the fact that a substantial portion of the judicial workload is consumed by cases filed under Section 138 of the Negotiable Instruments Act, which deals with the dishonour of cheques.

The Supreme Court has, over the past few years, initiated various steps and provided guidelines to streamline the process.

Earlier, in April 2021, the court issued a slew of directions aimed at expediting trials, including the suggestion for the establishment of special courts to exclusively handle cheque dishonour cases. The concept of a pilot project for special courts, initially proposed for five districts, was seen as a potential blueprint for wider implementation.

Other proposed solutions include leveraging technology for e-filing of complaints, encouraging mediation as an alternative dispute resolution mechanism, and facilitating the summoning of accused persons through digital modes.

These technological interventions are crucial in modernizing the judicial process and reducing physical appearances, thereby saving time and resources for both the courts and the litigants.

The continuous monitoring by the Supreme Court, with the assistance of senior advocate Sidharth Luthra as Amicus Curiae, underscores the urgency and complexity of the issue.

The immense volume of pending cases reflects a systemic problem that requires robust administrative and procedural reforms at various levels of the judiciary.

The forthcoming status reports are expected to provide a clear picture of the on-ground implementation of these recommendations and the challenges faced by states and UTs.

The Supreme Court's persistent push is a testament to its commitment to ensuring timely justice and reinforcing faith in the legal system, especially in matters that directly affect commercial activities and individual financial stability across the country. The resolution of this massive backlog is vital for unclogging courts and ensuring that justice is not delayed for millions of litigants.