Supreme Court Rollout: New Guidelines to Combat Cheque Bounce Case Surge

The Supreme Court of India has introduced new guidelines to address the overwhelming backlog of cheque bounce cases in district courts across major metropolitan areas. These changes are aimed at expediting the resolution process while maintaining the integrity and reliability of cheques as financial instruments.

The court's guidelines emphasize voluntary compromises and revise penalties in various stages of legal proceedings. If the accused pays the due cheque amount before the trial's evidence stage, the offence could be compounded without any penalties. However, penalties vary depending on the stage of legal proceedings when payment is made, emphasizing the need for timely settlements.

This significant legal reform highlights the quasi-criminal nature of Section 138 under the NI Act. It encourages timely resolution to ease judicial burdens while promoting the accountability and trustworthiness of cheques as viable cash payment alternatives. The court also announced changes in procedural law to improve the efficiency of the service of summons.

(With inputs from agencies.)