Cases of bad checks: SC proposes a plan similar to a loan waiver | India News
A bench of Justices LN Rao, BR Gavai and SR Bhat said many past innovations, such as evening courts attempted by high courts, have failed to stop the growing number of bad check cases under of Article 138 of the Negotiable Instruments Act.
Of the 33.4 lakh pending bad checks, Maharashtra accounted for the highest with 5.6 lakh. It was followed by Rajasthan with 4.8 lakh, Gujarat 4.4 lakh, Delhi 4.1 lakh, U.7 lakh, Haryana 2.36 lakh, Punjab 1.8 lakh and Madhya Pradesh 1.7 lakh. Amazingly, a large state like West Bengal has only 309 NSF check cases pending in court.
Referring to a memo submitted by amici curiae Barrister Sidharth Luthra and Barrister K Parameshwar, the bench said: “Find out how many of these loans, declared impaired due to NSF checks and non-payment, have If the banks wrote off small amounts, why should the courts continue with the lawsuit?”
The bench said the government could set a cap of Rs 10,000 or Rs 5,000 to drop cases. But, Additional Solicitor General SV Raju warned. “In loan repayments based on equal monthly installment repayment, a single NSF check can be a small amount, but the total loan amount can be a large sum.”
On the amici curiae’s suggestions for the establishment of a national portal for the issuance of subpoenas to defendants in cases of bad checks, a mediation mechanism to resolve the dispute and a program for the creation of additional special courts hiring retired judicial officers, the formation asked the Center, the states and the high courts to respond in two weeks and released the case for a rehearing on May 12.