2022 (5) TMI 978 - SC - Indian Laws

Dishonor of Cheque - conduct of trials of complaints under Section 138 of the Negotiable Instruments Act - HELD THAT - The Court directs that the pilot study shall be conducted in the manner indicated. The Secretary General of this Court shall ensure that a copy of the present order is directly communicated to the Registrar Generals of the said five High Courts, who shall place it before the Hon ble Chief Justice for immediate action. To report progress and compliance, each of the said five High Courts shall file an affidavit on or before 21.07.2022. List on 26.07.2022 to review the further proceeding.

Issues Involved:
1. Compliance with directions for expeditious trial of cases under Section 138 of the Negotiable Instruments Act, 1881.
2. Proposal for creation of Special NI Courts.
3. Feasibility of employing retired judicial/administrative officers.
4. Pilot study for employing retired officers in Special NI Courts.
5. Identification of districts with highest pendency of NI Act cases.
6. Guidelines for conducting the pilot study.

Detailed Analysis:

1. Compliance with Directions for Expeditious Trial:
The Supreme Court, referencing its Constitution Bench judgment in Re: Expeditious Trial of Cases under Section 138 of N.I. Act, 1881 (2021), noted that various directions were issued for the conduct of trials of complaints under Section 138 of the Negotiable Instruments Act. The Court required High Courts to file status reports on compliance with these directions, including the framing of appropriate rules and amendments to Police Manuals. All High Courts, except Patna High Court, have complied and proposed amended rules, with many states having notified these rules.

2. Proposal for Creation of Special NI Courts:
An Expert Committee, constituted by a Larger Bench judgment, suggested the creation of de novo Special NI Courts under Article 247 to manage the docket explosion. The Committee proposed a staffing scheme involving two grades of judges at both trial and appellate/revision stages, estimating the need for 1,826 special judicial officers and a total cost of Rs 126.59 crores.

3. Feasibility of Employing Retired Judicial/Administrative Officers:
The amici curiae argued that creating special courts with new staffing may not be immediately feasible. Instead, they suggested appointing retired judicial/administrative officers, such as retired Tehsildars, Special Executive Magistrates, Registrars of Tribunals, and statutory authorities, as Special Judicial/Metropolitan Magistrates for a fixed pay. The Court acknowledged the authority for this approach, referencing Kadra Pahadiya v. State of Bihar [(1997) 4 SCC 287], and considered retired public servants for these roles.

4. Pilot Study for Employing Retired Officers in Special NI Courts:
The amici curiae proposed a pilot study to test the scheme of employing retired judicial officers and court staff to operationalize Special Courts under the NI Act. The pilot would be conducted in five judicial districts with the highest pendency in five states with the highest pendency (Maharashtra, Rajasthan, Gujarat, Delhi, and Uttar Pradesh). The High Courts of these states provided their responses, identifying specific districts with the highest pendency.

5. Identification of Districts with Highest Pendency of NI Act Cases:
- High Court of Bombay: Identified Nagpur, Nashik, Thane, Pune, and CMM, Mumbai.
- High Court of Rajasthan: Identified Jaipur Metro-I, Jaipur Metro-II, Jodhpur Metro, Udaipur, and Ajmer.
- High Court Allahabad: Identified Lucknow, Agra, Kanpur, Gautambudh Nagar, and Ghaziabad.
- High Court of Gujarat: Concurred with establishing one additional court.
- High Court of Delhi: Already has 72 Special Courts for NI Act cases.

6. Guidelines for Conducting the Pilot Study:
The Court directed the pilot study to be conducted from 01.09.2022 to 31.08.2023 in 25 Special Courts across the identified districts. Guidelines included:
- Employing retired judicial officers and court staff, preferably retired within the past 5 years.
- Identifying infrastructural and human resource requirements by July 2022.
- Providing specialized training for presiding officers.
- Ensuring fixed honorarium for hired officers and staff.
- Adjudicating cases where summons have been served and the accused has appeared.
- Identifying and listing cases by July 2022.
- Publishing advance and weekly lists of cases for final disposal.
- Following the Criminal Procedure Code, 1973, for trial procedures, minimizing adjournments, and using online examination for outstation witnesses.
- Referring cases to mediation if the accused indicates willingness to settle.
- Collecting and monitoring data on case disposals, with weekly and quarterly reports to the Registrar General and Supreme Court.

The Secretary General was directed to communicate the order to the Registrar Generals of the five High Courts for immediate action, with progress and compliance affidavits to be filed by 21.07.2022. The case was listed for review on 26.07.2022.

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