The Supreme Court on Monday sought response from the central and all the state governments on a petition on huge backlog of cheque bounce cases in various courts. The petition has sought for framing guidelines for the speedy disposal of these cases.
A bench of Justices KS Radhakrishnan and Deepak Misra expressed its concern on the issue hearing a Public Interest Litigation (PIL) filed by Indian Bank Association.
The petition has alleged that there are around fifty lakh such cases pending in various courts. It said that huge sum of money gets blocked due to pendency of such large number of cases.The Indian Bank Association is an association of 174 banks and financial institutions.
The petition of The Indian Bank Association said, ‘Due to huge funds of the bank and in turn of the public being blocked in such protracted litigations, the banks are finding it difficult to carry out their banking functions and as such it is necessary that this court lays down appropriate and effective guidelines to enable the banks to deal with dishonour of cheque cases expeditiously.’
The Indian Bank Association counsel submitted that the Delhi High Court had recently framed some guidelines for such cases and it should be implemented across the country. The bench while issuing notice to the central and the states asked the Indian Bank Association to conduct proper research on the issue.
‘Considering the alarming situation of the pendency of cases and the constitutional rights of a litigant for a speedy and fair trial, it is necessary that the confidence of the banking industry which is the custodian of public funds in commercial transactions is not shaken,’ the petition said.
A bench of Justices KS Radhakrishnan and Deepak Misra expressed its concern on the issue hearing a Public Interest Litigation (PIL) filed by Indian Bank Association.
The petition has alleged that there are around fifty lakh such cases pending in various courts. It said that huge sum of money gets blocked due to pendency of such large number of cases.The Indian Bank Association is an association of 174 banks and financial institutions.
The petition of The Indian Bank Association said, ‘Due to huge funds of the bank and in turn of the public being blocked in such protracted litigations, the banks are finding it difficult to carry out their banking functions and as such it is necessary that this court lays down appropriate and effective guidelines to enable the banks to deal with dishonour of cheque cases expeditiously.’
The Indian Bank Association counsel submitted that the Delhi High Court had recently framed some guidelines for such cases and it should be implemented across the country. The bench while issuing notice to the central and the states asked the Indian Bank Association to conduct proper research on the issue.
‘Considering the alarming situation of the pendency of cases and the constitutional rights of a litigant for a speedy and fair trial, it is necessary that the confidence of the banking industry which is the custodian of public funds in commercial transactions is not shaken,’ the petition said.