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Cheque-bounce cases out of criminal courts?

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  • SUBHASH CHANDRA AGRAWAL
    Cheque-bounce cases out of criminal courts? It refers to media-reports about a ministerial-group having recommended settlement of criminal cases relating to
    Message 1 of 1 , Jul 7, 2013
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      Cheque-bounce cases out of criminal courts?

       

      It refers to media-reports about a ministerial-group having recommended settlement of criminal cases relating to cheque-bouncing cases to be decided only through arbitration, conciliation and or settlement by Lok Adalats. But such a change will return to an era of huge cheque-bouncing with people issuing cheques like ordinary paper for getting credit.

       

      Changes in procedure for handling cheque-bouncing cases was necessary when out of total 7.67 lakh pending criminal cases in Delhi, 5.15 lakh cases related to cheque-bouncing with 4.28 lakh cases filed by financial institutions clogging the system mainly because of cheque-bouncing relating to EMI-instalments. It is not proper that courts may serve as recovery-agents for these financial institutions where cheque-bouncing is normal part of their business. Separate courts should be for cases relating to banks and other financial institutions towards EMI-cheques with court-fees of say ten-percent levied on such cases filed by financial institutions. System will largely ease out pressure on courts for fast disposal of other cases filed by individual and firms under section 138 of Negotiable Instrument Act.

       

      Fifty-percent amount of penalty imposable under section 138 of Negotiable Instrument Act should be for judicial system, and this amount may be compulsorily charged from the accused once the case is filed, even if the cases are compromised during or outside court-proceedings. Accused may be required to furnish a bank-guarantee of the amount of bounced-cheques at first appearance, or may deposit the amount in the Court till final disposal of the case. Otherwise, bank-accounts and properties of defaulters may be attached till final disposal of the case and as directed by courts. This will create required fear-psychology to make most defaulters settle the matters just after receiving the mandatory legal notice required before filing the complaint under section 138 of Negotiable Instrument Act.

       

      SUBHASH CHANDRA AGRAWAL

      (Guinness Record Holder & RTI Activist)

      1775 Kucha Lattushah

      Dariba, Chandni Chowk

      DELHI 110006 (India)

      Mobile 9810033711    Fax      23254036

      E-mail  subhashmadhu@...

      Web     www.subhashmadhu.com

      08.07.2013

      DEABD/E/2013/02335 

      PRSEC/E/2013/10463

       

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