Date:11/09/2008 URL: http://www.thehindu.com/2008/09/11/stories/2008091155531300.htm

National

“Fast track courts, only way out to clear cheque bounce cases”

J. Venkatesan

Lakhs and lakhs of cases pending, says Law Commission

Litigants facing alarming situation, waiting for justice on the doorsteps of magistrate courts
For want of adequate number of courts and judges, disposal is inordinately delayed

New Delhi: With a view to reducing the burden of trial courts, the Law Commission has recommended the setting up of fast track courts to decide cheque bounce cases filed under Section 138 of the Negotiable Instruments Act.

In its report to be submitted to the government, the Commission, headed by Justice A.R. Lakshmanan, has said: “Lakhs and lakhs of [Section 138] cases are pending. The litigant public are facing an alarming situation waiting for justice on the doorsteps of various magistrate courts [and on appeal in High Courts]. Every litigant has a right to speedy and fair trial.”

Citing a Supreme Court judgment, the Commission said dishonouring of cheque by a bank “causes incalculable loss, injury and inconvenience to the payee and the entire credibility of the business transactions within and outside the country suffers a serious setback.”

In enacting the NI Act, the legislature was keen on ensuring expeditious disposal of cheque bounce cases. However, for want of an adequate number of courts and judges, disposal was inordinately delayed.

Object of NI Act defeated

The Commission said the main problem was the huge pendency in magistrate and High Courts. It was therefore absolutely essential to have additional courts specifically for trying cases filed under Section 138 of the Act. The present state of affairs defeated the very object for which the provision was inserted in the Act.

Starting of fast track courts helped to a great extent in disposing of pending criminal cases. That by itself proved that it was for lack of a large number of courts that pendency of criminal cases was on the rise, the Commission said. Dishonouring of a cheque was a crime. “But we hardly see any people are punished for bouncing of the cheques. People do not trust the bank cheques.”

The Commission said: “Keeping in view the performance of fast track courts the government of India should formulate a similar scheme for setting up FTCs of magistrates in each State.

“The Commission is of the firm opinion that considering the alarming situation and the pendency of cases and the constitutional rights of a litigant to speedy and fair trial, the GoI should direct the State authorities for setting up of FTCs, which alone will solve the perennial problem of pendency.”