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2020 Supreme(SC) 619

S. A. BOBDE, L. NAGESWARA RAO
Makwana Mangaldas Tulsidas – Appellant
Versus
State of Gujarat – Respondent


Advocates Appeared:
For the Petitioner: Mr. Ajit Sharma, AOR.
For the Respondent: Mr. Aniruddha P. Mayee, AOR, Mr. A. Rajarajan, Adv., Mr. Sanjeev Kr. Choudhary, Adv.

Judgement Key Points

Certainly. Based on the provided legal document, here are the key points:

  • The judgment emphasizes the necessity of a coordinated mechanism involving banks, police, and legal services authorities to ensure the expeditious adjudication of cases under Section 138 of the Negotiable Instruments Act, 1881, in compliance with legislative mandates and leveraging modern technology to address delays and reduce case pendency (!) (!) .

  • Despite legislative provisions and court mandates for speedy trials, there is significant pendency and delay in trial courts, primarily due to issues such as the absence of the accused, which contributes to prolonged case durations, sometimes extending up to 15 years (!) (!) (!) .

  • The court underscores the importance of pragmatic and realistic approaches in issuing summons, including proper addressing, use of electronic communication, and assistance from police or nearby courts to serve notices effectively (!) (!) .

  • It advocates for a multi-modal service mechanism, including service through speed post, courier, email, or police, and stresses the role of banks in providing requisite details of the accused, such as email IDs, mobile numbers, and addresses, to facilitate faster service and trial processes (!) (!) .

  • The development of a software-based tracking system to monitor service and ensure the presence of the accused is recommended, along with guidelines from the regulatory authority to facilitate information sharing and streamline proceedings (!) .

  • To prevent misuse and frivolous litigation, the court suggests that cheques should include details such as the purpose of payment, which can aid in proper adjudication, and considers the possibility of developing new cheque formats (!) .

  • The court highlights the importance of coercive measures, such as attachment of property, to secure the presence of the accused when necessary, and proposes mechanisms for recovering interim compensation and fines efficiently (!) .

  • Recognizing the high volume of cases, the court encourages the development of pre-litigation settlement mechanisms, such as settlement through designated authorities, which can effectively reduce the docket burden and facilitate quicker resolution (!) (!) .

  • The establishment of exclusive courts for handling cases under Section 138, especially in high-pendency areas, is recommended, along with setting performance norms for timely disposal (!) .

  • The use of modern technology, including online or paperless courts, is encouraged to reduce court congestion and facilitate remote adjudication, especially for cases with straightforward issues (!) (!) .

  • The court also considers the possibility of decriminalizing minor cheque dishonours and shifting such cases to civil jurisdiction, to better reflect the nature of the offence and reduce criminal caseloads (!) .

  • Overall, the judgment calls for a collaborative effort among all stakeholders—banks, police, legal authorities, and courts—to develop schemes and measures that ensure swift and just adjudication of cheque dishonour cases, fulfilling legislative intents and reducing case backlog (!) .

  • The matter is to be registered as a separate Suo Moto Writ Petition for the purpose of evolving and implementing these mechanisms, with notices issued to relevant authorities and stakeholders for further proceedings (!) (!) .

  • The court has appointed senior advocates as Amicus Curiae to assist in the process and has scheduled further hearings to facilitate the development of these mechanisms (!) (!) .

Please let me know if you need a detailed explanation on any specific point.


ORDER :

This Petition relates to dishonour of two cheques on 27.01.2005, for a total amount of Rs. 1,70,000/-, tried and contested over a period of 15 years up till this Court. A matter which is supposed to be disposed of summarily by the trial court in six months, it took seven years for this case to be disposed of at the trial court level. A dispute of such nature has remained pending for 15 years in various courts, taking judicial time and space up till this Court.

2. Dishonour of cheque, which originally gave cause of action to file a civil suit, was criminalised in the year 1988, with the insertion of Chapter XVII in the Negotiable Instrument Act, 1881. Cheque dishonour, followed by default in payment after a demand notice, became punishable under Section 138 with imprisonment or fine which may extend to twice the amount of the cheque or both.

3. The legislative intent behind the above-mentioned amendment was to ensure faith in the efficacy of banking operations and credibility in transacting business on cheques. It was to provide a strong criminal remedy in order to deter the high incidence of dishonour of cheques and ensure compensation to the complainant. Subsequent amendments

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      Judicial Analysis

      None of the cases in the provided list explicitly indicate that they have been overruled, reversed, or treated as bad law. There are no phrases such as "overruled," "reversed," "disapproved," or similar language that would suggest a negative treatment or invalidation of these precedents. Therefore, based on the available information, no cases are identified as bad law.

      Followed / Affirmed / Consistently Cited:

      Several references to Makwana Mangaldas Tulsidas v. State of Gujarat, (2020) 4 SCC 695, appear multiple times (e.g., EURO PRATIK ISPAT (INDIA) PVT. LTD. vs MAJESTIC LEGENDS SPORTS PVT. LTD. - 2025 Supreme(Online)(CHH) 566, Ultimate Computer Care vs S.M.K.Systems - 2025 0 Supreme(Mad) 4715, Rathi Vasudeva Rao VS P V R M Patnaik - Current Civil Cases (2025), Karmayogi Shankarraoji Patil VS Ruia & Ruia Pvt. Ltd. - 2022 0 Supreme(Bom) 882, M/s.Ultimate Computer Care vs M/s.S.M.K.Systems - 2025 Supreme(Online)(Mad) 31070). The repeated citations suggest that this case is considered a guiding or authoritative decision on the subject of speedy trials and directions for expeditious proceedings. The language indicates it is being cited for its legal principles rather than being questioned or criticized, implying it remains good law and is followed as a precedent.

      Cases like Indian Bank Association VS Union of India - 2014 0 Supreme(SC) 321 and K. N. Govindan Kutty Menon VS C. D. Shaji - 2011 8 Supreme 292 discuss procedural directions and legal principles (e.g., enforcement of awards by Lok Adalat) without any indication of negative treatment. They appear to be consistent with established legal principles and are likely considered good law.

      Other Treatment Patterns:

      The case EURO PRATIK ISPAT (INDIA) PVT. LTD. vs MAJESTIC LEGENDS SPORTS PVT. LTD. - 2025 Supreme(Online)(CHH) 566 emphasizes the need for speedy trials in cheque dishonour cases, citing the Makwana case, but does not indicate any deviation or negative treatment.

      The case Suresh @ Sureshkumar VS State Rep. by the Inspector of Police, Ponmalai All Women Police Station - 2021 0 Supreme(Mad) 2818 references multiple judgments, including State of Maharashtra and Satpal Singh, but there is no language indicating that these cases have been overruled or criticized.

      Uncertain Cases:

      All cases appear to be presented as current and authoritative, with no explicit language indicating they have been questioned, criticized, or overruled. However, the absence of specific treatment language means there is some uncertainty whether these are still considered good law or have been implicitly overruled or limited in scope.

      For example, Anoop Jacob S/o Late T. M. Jacob VS State of Kerala - 2021 0 Supreme(Ker) 389 mentions service by police officer but without context or subsequent treatment, making its current legal standing uncertain.

      In summary, the list primarily references cases that seem to be treated as good law, with no explicit indications of negative treatment or overruling. The repeated citations of the Makwana case suggest it remains a key precedent on speedy trial directions. No cases are definitively identified as overruled or bad law based on the provided data.

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