The Supreme Court of India has recently delivered a landmark judgment in the writ petition titled “Indian Banks Association (IBA) &Ors. Vs. Union of India &Ors.”W.P (C) No. 18 of 2013. IBA is the representative body of Banks in India having more than 174 banks/financial institutions as its members.

The writ was occasioned as a result of more than 40 lakh cases under Section 138 of Negotiable Instruments Act, 1881 (NI Act) (which deals with the dishonor of cheques cases) pending before Courts all over India involving hundreds of crores of rupees.

Considering the alarming situation of the pendency of cases and the constitutional rights for a speedy and fair trial, it was necessary that the confidence of the banking industry which is custodian of public funds is not shaken in as much as due to huge funds of the banks and in turn of the public being blocked in protracted litigations, the banks are finding it difficult to carry out their banking functions.

The writ petition was filed by IBA in 2013 seeking directions from the Supreme Court of India and for laying down appropriate and effective guidelines for effective implementation of law and expeditious disposal of huge number of pending cases under Section 138 of NI Act. It was prayed that appropriate directions are issued to all the courts in India thereby facilitating speedy decisions in pending and futurecases in accordance with provisions of NI Act which would not only reduce the mounting arrears pressure on the courts below but also restore the confidence of consumers in trade, commerce and banking business in India and the banks would have ample time to channelize their blocked funds.

Vide a detailed judgment pronounced on 21.04.2014 (copy made available now), the Supreme Court has laid down elaborate guidelines to be followed by all the criminal courts in India for speedy and expeditious disposal of cases falling under Section 138 of Negotiable Instruments Act, 1881. The said directions will go a long way to streamline the procedure for hastening disposal of cases of cheque bouncing instituted under Section 138 of the NI Act. This will not only render speedy justice in cheque dishonour cases but improve functioning of the justice delivery system as a whole.

In the said landmark judgment, the Supreme Court has for the first time allowed the provisions regarding service of summons by email to accused, accepting affidavits of witnesses during evidence and directed completion of evidence of Complainant within 3 months of assigning of case to the Court besides directing uniform practice to be followed by Magistrates throughout India.