Lawstreet Journal

SC Gives Judgement in Suo Moto Case for Expeditious Trial of Cases Under Section 138 OF N.I. Act 1881 [READ ORDER]

Lawstreet Journal 19 Apr 2021 10:13pm

Image courtesy: Lawstreet Journal Judiciary SC Gives Judgement in Suo Moto Case for Expeditious Trial of Cases Under Section 138 OF N.I. Act 1881 [READ ORDER]

A five-member bench of the Supreme Court gave its judgement in a Suo Moto case relating to the expeditious trial of cases relating to dishonoured cheques under Section 138 of the Negotiable Instruments Act, 1881. 

The bench which heard the matter included Chief Justice S. A. Bobde along with Justices L. Nageswara Rao, B. R. Gavai, A. S. Bopanna and S. Ravindra Bhat.

In 2016 while considering a matter related to the dishonour of two cheques which were pending before the courts for 16 years, a two-member bench of the Supreme Court felt the need to enquire into the large number of cases filed under Section 138 of the Negotiable Instruments Act, 1881 pending at various levels of the judiciary. The Suo Moto writ petition was filed as a follow-up this observation of the court and the court appointed Senior Advocate Sidharth Luthra as the Amicus Curiae and Advocate K. Parameshwar was asked to assist him. Notices were issued to the Union of India, Registrar Generals of the High Courts, Director Generals of Police of the States and Union Territories, Member Secretary of the National Legal Services Authority, Reserve Bank of India and Indian Banks’ Association, Mumbai as the representative of banking institutions.

The Chapter XVII of the Negotiable Instruments Act, 1881 containing sections 138 to 142 lays down the provisions related to the offence of dishonour of cheques. Dishonour of cheques for insufficiency of funds was made punishable with imprisonment for a term of one year or with a fine which may extend… Continue Reading...


Tagged: Supreme Court of India  
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