Thread by @barandbench

Supreme Court bench led by CJI SA Bobde to hear its suo motu case on expeditious trial of cheque bounce cases under Section 138 of Negotiable Instruments Act. Amicus Curiae had earlier informed that 11 High Courts were left to respond.

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#ChequeBounce

Supreme Court begins hearing

Justice Ravindra Bhat: For matters in which union has powers Court can be created

Senior Adv Siddharth Luthra: there is a tsunami of numbers. Burden on courts is increasing

CJI: When legislature introduces a law, it has to make a judicial impact assessment. Which is the judgment?

Advocate Parameshwaran: Law commission reports had dealt with it. I don't think there are direct judgments.

CJI: if centre shows resistance to creation of additional courts which we hope they will not. Whether there are additional courts or not we have to streamline the process. We have to hear the matter on streamlining of procedure.

CJI: Even if those courts are established we have to streamline the process that's why we are going ahead with this.

Senior Adv Luthra points out issues:

1. Issues regarding services of summons: Private complaint and Section 138 summons are last to be served. There needs to be a creation of a nodal agency.

CJI: Nodal agency for service of summons?

Luthra: electronic service of summons. Everything is linked to @UIDAI Aadhaar so there is no reason why this cannot be streamlined.

CJI: okay

Luthra: High courts say practice directions can be issued.

Luthra: under Section 83 any property can be attached. Way summary trials are conducted and mechanical conversion of summary trials. It has to proceed like summons cases.

CJI: I don't follow

Justice Bhat: CrPC requires a summary trial. The only hitch is it gets converted to summary trial

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Justice Bhat: there is no need to examine the complainant by the court per se

Luthra: 2016 11 SCC 105 Decision kept of law question open in this case.

Luthra: This position exists today and it needs to be settled on the judicial side.

Justice Bhat: You the complainant file a section 200 complaint under NI Act and you file it in Mumbai where you are from Delhi. The enquiry is by magistrate and he has to apply mind to complaint

Justice Bhat: If the issuing bank is somewhere else and accused is somewhere else then three or four lines simple order is issued before cognizance is taken.

CJI: what is there in NI Act or CRPC which suggests that offence under Section 202 is not included?

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CJI: section 202 will apply to all trials under all laws General or special unless that special or general law deals with the same subject as Section 202. This is the effect of secrion 4.

CJI: As a proposition section 202 will apply to all accused in the country and prevent harassment. This will at some point run counter to rights under Article 14 and 21. We will like you to examine the cases relied by this court on special courts.

CJI: there is no provision analogous to Section 202 under any law including the NI Act.
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CJI: let us take up the matter next week.

Luthra: Section 219 has to be read with Section 220.

Justice Bhat; You are saying there may be 20 complaints against the same person and it has to be taken up together.

Luthra: If multiple cheques in given transaction is given together then it can be taken up together

CJI: If I have bought a car and it's repayment is one offence. But if out of 20 cheques, 5 bounce then the trial of all 5 can be 1. You telescope 219 into 220. 219 says he can be charged with any number not exceeding 3.

CJI: If 3 cheques are part of same Transaction then it is under Section 220. So this argument is not needed.

CJI: if repayment of cheques is for a period longer than a year then Section 219 does not happen. One dishonor is one offence because it is capable of being tried separately. Say accounts books are being falsified and accountants make several false entries.

CJI: Each entry can be a separate offence. But if entries made to falsify the account book then they can be tried together

CJI: let us take it up next week. We need some briefing and reading time. Give us a note also. Some of the things have come up for the first time. We will think it over and read your (Senior Adv Siddharth Luthra) note too.