In Brief

This Suo Motu petition addressed systemic delays in disposal of cheque dishonour cases under Section 138 of the Negotiable Instruments Act. As of December 2019, approximately 35 lakh such cases were pending across Indian courts. The Supreme Court held that Section 202 inquiries are mandatory before summons issue when accused reside outside court jurisdiction; evidence in such inquiries may be taken by affidavit rather than oral examination. The Court directed that summary trials must not be mechanically converted to summons trials without cogent reasons. Trial Courts lack inherent power to recall summons orders. Service of summons in one transaction-related complaint constitutes deemed service for all related cheque dishonour complaints. The Court recommended legislative amendments and referred remaining issues to a dedicated committee for further deliberation on speeding up these cases.

The lawyer headnote and full judgment text are available to registered users.