SC orders constitution of special court in five States for cheque bounce cases

Special courts with a retired judge would be set up in the States of Maharashtra, Delhi, Gujarat, Uttar Pradesh and Rajasthan

The Supreme Court on Thursday directed the constitution of special courts with a retired judge in five States starting September 1 for expeditious disposal of cheque bounce cases.

A three-judge bench of Justices L. Nageswara Rao, B.R. Gavai, and S. Ravindra Bhat said the special courts under the Negotiable Instruments Act (NI), would be set up in the States of Maharashtra, Delhi, Gujarat, Uttar Pradesh and Rajasthan in view of a large number of cases pending in these states.

"We have incorporated the suggestions of the amicus with respect to the setting up of the pilot courts and we have given the timelines also. It is to begin on September 1, 2022 onwards.

The Secretary General of this court shall ensure that a copy of the present order is directly communicated to the Registrar General of the said five High Courts, which should put it before the Chief Justices for immediate action," the bench said.

The top court incorporated the suggestion of the amicus curiae that five districts in each of the above States, where cases under the NI Act are high, can be selected and one court in each such district be established.

The apex court directed its Secretary General to communicate the order to the Registrar General of the High Courts of these States while directing them to file an affidavit by July 21, 2022 on compliance.

The amicus had suggested having one court in one district with a retired judge as a pilot project.