SUPREME COURT OF INDIA
L. NAGESWARA RAO, B.R. GAVAI, S. RAVINDRA BHAT, JJ.
In Re: Expeditious Trial of Cases Under Section 138 of N.I. Act 1881 – Appellant
Suo Motu Writ (Criminal) No. 2 of 2020
Decided On : 19-05-2022
Negotiable Instruments Act, 1881 – Section 138 – Dishonour of cheque – Speedy trial of cases – Special Magistrate’s Courts for conducting trial of cases under NI Act can be constituted under Section 18 of Cr.P.C, 1973 (along with S.13, Cr.P.C) – Retired public servants, such as Tehsildars and Magistrates can be considered for appointment as Special Judicial/Metropolitan Magistrates – Retired government personnel and retired court staff could be appointed for operationalising these courts – As per data available on 08.11.2021, NI Act cases contribute to 8.81% of total criminal cases pending in courts – 11.82% of total criminal cases that are stagnating due to appearance/service related issues are NI Act cases – Pilot study shall be conducted for a duration of 1 year from 01.09.2022 to 31.08.2023 – Pilot study shall be conducted in 25 Special Courts in total – One Special Court shall be established in each of 5 judicial districts which have been identified as having highest pendency by each of five High Courts of States with highest pendency of NI Act cases – Identified judicial officers, who are to preside over Special Courts, be imparted specialised training – A four-week training programme by State Judicial Academies on topics of substantive, procedure and evidence law related to offences under NI Act shall be conducted for them – High Court concerned should ensure that Presiding Officers and court staff for operationalising Special Courts can be hired on contractual basis for one year for duration of pilot study – They be paid a fixed honorarium in accordance with their standing prior to retirement – Guidelines and directions issued. (Paras 5, 6 and 10)
Facts of the case:
By a judgment of the Constitution Bench of this Court in Re: Expeditious Trial of Cases under Section 138 of N.I. Act, 1881{(2021) SCCOnline SC 325} various directions were issued with respect to the conduct of trials of complaints under Section 138 of Negotiable Instruments Act. This court by its subsequent order dated 31.03.2021 had required High Courts to file status reports indicating compliance with the directions contained in the judgment and as to whether rules were framed appropriately in line with the judgment. Similarly, the necessary amendments to the Police Manuals etc. had to be carried out. As on date, all High Courts except the Patna High Court have complied with the directions and proposed the amended Rules. In many states, amended rules have even been notified.
Findings of Court:
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.
Result : Directions issued. Matter listed for next hearing.
ORDER :
1. By a judgment of the Constitution Bench of this Court in Re: Expeditious Trial of Cases under Section 138 of N.I. Act, 1881 [(2021) SCC Online SC 325] various directions were issued with respect to the conduct of trials of complaints under Section 138 of the Negotiable Instruments Act.
2. This court by its subsequent order dated 31.03.2021 had required High Courts to file status reports indicating compliance with the directions contained in the judgment and as to whether rules were framed appropriately in line with the judgment. Similarly, the necessary amendments to the Police Manuals etc. had to be carried out. As on date, all High Courts except the Patna High Court have complied with the directions and proposed the amended Rules. In many states, amended rules have even been notified.
3. On 16.04.2021, by the said judgment of the Larger Bench, an expert Committee was constituted to consider various suggestions with respect to streamlining the procedure of arresting the judicial docket, in regard to complaints and trials for offences under the Negotiable Instruments Act. The Expert Committee, by its report has suggested the creation of de novo Special NI Courts by the Central Government vide its powers under Article 247 to tackle the problem of docket explosion. The Expert Committee proposed a scheme with two grades of judges at the trial court level and two at the appellate/revision stage. According to the Expert Committee’s calculations, the establishment of these special NI Courts would require recruitment of 1,826 special judicial officers and a total cost of Rs. 126.59 crores.
4. The amici curiae urged, in the hearing that the suggestion of creation of special courts with the proposed staffing pattern may not be feasible or practical, as it would not be possible to immediately establish de novo courts and recruit fresh candidates and support staff. It was urged that the option of appointing retired judicial/administrative officers who have worked and discharged quasi-judicial functions such as retired Tehsildars, Special executive Magistrates, Registrars of Tribunals and statutory authorities and High Courts etc officers as Special Judicial/Metropolitan Magistrates for a fixed pay be explored.
5. Special Magistrate’s Courts for conducting trial of cases under the NI Act can be constituted under Section 18 of Cr.P.C. 1973 (along with S.13, Cr.P.C). There is authority for this course of action [Ref. Kadra Pahadiya vs. State of Bihar, (1997) 4 SCC 287]. Retired public servants, such as tehsildars and magistrates can be considered for appointment as Special Judicial/Metropolitan magistrates. Retired government personnel and retired court staff could be appointed for operationalising these courts.
6. The report of the Expert Committee disclosed that as on 08.11.2021, 26,07,166 complaints were pending at various stages before the Courts seized of trial of offences under the NI Act. As on 13.04.2022, this pendency has increased to 33,44,290. This is an increase in pendency of 7,37,124 cases in a period of just over 5 months. As per the data available on 08.11.2021, NI Act cases contribute to 8.81% of the total criminal cases pending in the courts. Further, 11.82% of the total criminal cases that are stagnating due to appearance/service related issues are NI Act cases.
7. The amici curiae suggest a pilot study to test the scheme of employing retired judicial officers and retired court staff to operationalise the Special Courts under the NI Act. It was suggested that this scheme could be tested on a pilot basis in 5 judicial districts with the highest pendency in the 5 states with the highest pendency (namely, Maharashtra, Rajasthan, Gujarat, Delhi and Uttar Pradesh) and the viability of utilising services of retired judicial officers can be examined based on the results of the pilot study.
8. This High Court has by its order dated 27.04.2022 directed the High Courts in the states of Maharashtra, Rajasthan, Gujarat, Delhi and
Re: Expeditious Trial of Cases under Section 138 of N.I. Act, 1881
Dishonour of cheque – Special Magistrate’s Courts for conducting trial of cases under NI Act can be constituted under Section 18 of Cr.P.C, 1973 (along with S.13, Cr.P.C) – Retired public servants, s....
The judgment emphasizes the need for measures to facilitate the early disposal of cases under the NI Act and the establishment of special courts in states with high pending cases.
The establishment of additional Special Courts for NIA cases is essential to ensure speedy trials and compliance with constitutional mandates.
The court mandated that trials under Section 138 of the N.I. Act must be concluded expeditiously, ideally within six months, following the Apex Court's guidelines.
The court emphasized the necessity for expeditious trials under the Negotiable Instruments Act, mandating adherence to specific procedures to ensure timely resolution of complaints.
Dishonour of cheque – All proceedings under N.I. Act should be concluded expeditiously without going into unnecessary technicality.
The main legal point established in the judgment is the need for expeditious disposal of cases under the N.I. Act, as emphasized by the directions issued by the Apex Court and the statutory provision....
The court mandates expeditious disposal of trials under Section 138 of the N.I. Act, emphasizing adherence to statutory timelines and proper procedures.
The court established that trials under Section 138 of the Negotiable Instruments Act must be conducted expeditiously, in line with statutory requirements and Supreme Court directives.
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