2022 (5) TMI 1024 - SC - Indian Laws

Dishonor of Cheque - pre-summons mediation - Negotiable Instruments Act, 1881 - HELD THAT - In respect of pre-summons mediation, National Portal for summons and the scheme for establishment of special courts for cases under the NI Act, the Union of India, the High Courts and the State Governments are directed to submit their suggestions within a period of two weeks from today. In so far as constitution of special courts is concerned, the learned Amicus Curiae has, for the purposes of constitution of special courts under the NI Act, identified states of Maharashtra, Delhi, Gujarat, Uttar Pradesh and Rajasthan on the ground that the number of cases pending in these states are higher than the other states. The suggestion made by the learned Amicus Curiae is 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 High Courts of Maharashtra, Delhi, Gujarat, Uttar Pradesh and Rajasthan can respond to the said suggestion made by the learned Amicus Curiae, within a period of two weeks. List for further directions on 12.05.2022 at 3.00 p.m.

Summary

Issues:
1. Appointment of a Committee to facilitate the disposal of cases under the Negotiable Instruments Act, 1881.
2. Submission of report by the Committee and suggestions by the Amicus Curiae.
3. Issuance of practice directions by High Courts.
4. Pre-summons mediation, National Portal for summons, and establishment of special courts.
5. Submission of suggestions by Union of India, High Courts, and State Governments.
6. Identification of states for constitution of special courts.
7. Response by High Courts to the suggestion of establishing special courts.

Analysis:
1. The Supreme Court appointed a Committee on 10.03.2021 to recommend steps for expediting the disposal of cases under the Negotiable Instruments Act, 1881 (NI Act).
2. The Committee submitted a report, and the Amicus Curiae provided suggestions on the observations and recommendations in the report.
3. Most High Courts issued practice directions as per the Court's order, except for Madras, Sikkim, Uttarakhand, Patna, and Orissa, which were directed to issue the practice directions promptly.
4. The Union of India, High Courts, and State Governments were directed to submit suggestions within two weeks on pre-summons mediation, the National Portal for summons, and the establishment of special courts for NI Act cases.
5. The Amicus Curiae identified Maharashtra, Delhi, Gujarat, Uttar Pradesh, and Rajasthan for the constitution of special courts due to a higher number of pending cases in these states.
6. The suggestion was to select five districts in each state with high NI Act cases and establish one court in each district. High Courts of the identified states were given two weeks to respond to this suggestion.
7. Further directions were listed for 12.05.2022 at 3.00 p.m. to address the progress and responses regarding the establishment of special courts and other related matters.