Check Bounce: SC seeks response from Centre, States, High Courts; Maharashtra has maximum pending cases | check state-wise number of cases list
The expert committee recommended that special courts should be set up for this and if needed, retired judges should be appointed for hearing.
Check Bounce: The Supreme Court is very serious about the speedy disposal of check-bounce cases. The SC has sought answers from the Centre, States and High Courts on the recommendations of the Expert Committee formed on the same matter. The expert committee recommended that special courts should be set up for this and if needed, retired judges should be appointed for hearing.
Zee Business had launched a campaign on the settlement of check bounce cases. The court has sought answers from the Centre, states, and HCs on the suggestions of the Expert Committee. The committee suggested that separate courts should be set up to check bounce cases. It has also been said that if need be, retired judicial officers should be appointed.
According to the Expert Committee, about Rs 127 crore will be spent on the new court. Along with this, 1826 judicial officers will also have to be recruited for creating a separate court.
Earlier, some high courts had started evening court on check bounces. As of April 13, 2022, 33.44 lakh check bounce cases are pending in the country. There are pilot special courts in Maharashtra, Gujarat, Rajasthan, Delhi, and UP regarding this.
Top 5 states in check bounce cases
state - cases pending
Maharashtra - 5,60,914
Rajasthan - 4,79,774
Gujarat - 4,37,979
Delhi - 4,08,992
Uttar Pradesh - 2,66,777
(till 13th April 2022)
While there are more cases of check bounces, special courts have been suggested in 5 districts of those 5 states. The Expert Committee has also suggested that there should be a national portal for information on summons. It has been seen that people often refuse to take summons, which delays the trial. It has been suggested that before issuing summons, a way of mutual reconciliation should be found. There is also a suggestion to amend the Negotiable Act for the path of conciliation. Opinion was sought from IBA on whether such cases can be closed where the amount is very less.
Provision of punishment on check bounce
There is a provision of punishment for non-payment even after 15 days' notice of check bounce. In this, there is a provision of imprisonment up to a maximum of two years or a fine of twice the amount or both. The Finance Ministry had earlier sought suggestions on de-criminalization. In this case, there was opposition from a large number of business classes to do non-criminal.
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