SC notice to Centre, states on pendency of cheque bounce cases

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SummaryThe bench while issuing notice to the Centre and the states asked the association to conduct proper research on the issue.

Expressing concern over huge backlog of cheque bounce cases in various courts, the Supreme Court today sought response from the Centre and all the state governments to a plea for framing guidelines for their speedy disposal.While seeking responses of various governments, a bench of

Justices K S Radhakrishnan and Deepak Misra said it is "very

serious issue."

The court gave the order while hearing a PIL filed by

Indian Bank Association, which sought directions for speedy

trial of cheque bounce cases alleging that there are around

fifty lakh such cases pending in various courts.

Senior advocate Shyam Divan, appearing for the association

submitted that the Delhi High Court had recently framed some guidelines for such cases and it should be implemented across the country. The bench while issuing notice to the Centre and the states asked the association to conduct proper research on the issue.

The petitioner, an association of 174  banks and financial

institutions, submitted that huge sum of money gets blocked due to pendency of such large number of cases.

Considering the alarming situation of the pendency of

cases and the constitutional rights of a litigant for a speedy

and fair trial, it is necessary that the confidence of the

banking industry which is the custodian of public funds in

commercial transactions is not shaken," the petition said.

"Due to huge funds of the bank and in turn of the public

being blocked in such protracted litigations, the banks are

finding it difficult to carry out their banking functions and

as such it is necessary that this court lays down appropriate

and effective guidelines to enable the  banks to deal with

dishonour of cheque cases expeditiously," the petition said.

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