The Supreme Court of India has taken decisive steps to address the massive backlog of cheque bounce cases that are clogging the nation's courts. These cases, filed under Section 138 of the Negotiable Instruments Act (NI Act), can constitute up to 50% of the pendency in some states. To expedite the disposal of these cases, the Supreme Court has issued fresh guidelines and is seeking status reports from states and union territories on the measures implemented.

New Guidelines for Speedy Disposal

The Supreme Court has announced several key reforms to ensure faster disposal of cheque bounce cases. These reforms, set to take effect from November 1, 2025, aim to restore confidence in cheques as a reliable instrument of trade while ensuring quicker justice for both complainants and accused. The guidelines include:

• Speedier Summons: Summons must be served through traditional methods and electronically (email, WhatsApp, etc.). The complainant is responsible for providing verified contact details.
• Early Settlement: District courts must establish secure online payment systems (QR codes, UPI links) to allow accused persons to directly pay cheque amounts at the first stage.
• Standardized Complaint Format: All cheque bounce complaints must include a detailed synopsis with cheque, bank, and notice details upfront.
• Revised Compounding Guidelines: The Court revisited its 2010 ruling in Damodar S. Prabhu on compounding of offenses, making settlements easier and cheaper if done early. If the accused pays the cheque amount before presenting evidence, no costs will be imposed. Delays in settlement will attract scaled costs, up to 10% of the cheque amount if settled at the Supreme Court stage.

Supreme Court's Concerns and Actions

The Supreme Court's intervention comes in response to the alarmingly high number of pending cheque bounce cases in Indian courts. As of December 18, 2024, there were 43 lakh such cases pending across the country. The Court has expressed concern over the delays in disposing of these cases, which it has described as "quasi-criminal" and "a civil sheep in a criminal wolf's clothing".

In March 2020, the Supreme Court took suo motu cognizance of the issue, noting that over 35.16 lakh cheque bounce cases were pending as of December 31, 2019, out of a total of 2.31 crore pending criminal cases nationwide. The court then issued a series of directions, including asking the Centre to amend laws to allow clubbing of trials in cases filed against the same person within a year relating to the same transaction.

Rajasthan's High Pendency

Among all states and union territories, Rajasthan has the highest number of pending cheque bounce cases, with more than 6.4 lakh cases. Following Rajasthan are Maharashtra, Gujarat, Delhi, Uttar Pradesh, and West Bengal. The Supreme Court initiated a pilot study in five states, including Rajasthan, to expedite case handling.

Rajasthan High Court's Stand

In a recent ruling, the Jodhpur bench of the Rajasthan High Court stated that the presence of the accused should not be insisted upon in cheque bouncing cases, given their semi-criminal/civil nature, unless the trial court needs to examine the accused or record their statement. The Rajasthan High Court has also upheld the right to file fresh complaints in cases of premature cheque bounce, emphasizing the legal maxim "Ubi Jus Ibi Remedium" – where there is a right, there must be a remedy.

Pilot Project and Status Reports

In May 2022, the Supreme Court ordered the establishment of 25 special courts in five states—Maharashtra, Delhi, Gujarat, Uttar Pradesh, and Rajasthan—using retired judicial officers to deal exclusively with cheque bounce cases. The pilot project was scheduled from September 1, 2022, to August 31, 2023.

The Supreme Court has now directed all states and union territories to file detailed status reports on the measures taken to expedite the disposal of cheque dishonor cases. These reports should include data on vacancies and appointments of judicial officers. The court has listed the matter for further hearing after six weeks.