Question : Cheque Bounce Cases

(a) whether the number of cases relating to cheque bounce are on the rise in the country, if so, the details thereof along with the cases pending in various courts, Court/ Bank/ State/ UT-wise;

(b) whether the Government proposes to amend the Negotiable Instruments Act, 1881 to prevent cheque bounce cases and if so, the details thereof;

(c) whether the cheque related frauds have also increased manifolds and if so, the details thereof during the last three years, State/UT-wise; and

(d) the steps being taken by the Government to curb the menace of cheque bounce and fraud in the country?

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE


(a): Information with regard to the disposal of cases under Section 138 of Negotiable Instruments Act, 1881 in National Lok Adalats organised by National Legal Services Authority of India (NALSA) during the year 2017 is at Annex.

(b): In order to increase the credibility of the cheque as a financial instrument, and to help trade and commerce in general by allowing lending institutions, including banks, to continue to extend financing to the productive sectors of the economy, the Government has introduced the Negotiable Instruments (Amendment) Bill, 2017 in Lok Sabha on 20.02.2018. The Bill provides for an interim compensation of a sum not exceeding 20% of the amount of the cheque to the payee at the Trial stage. Further, the Appellate Court may order the appellant to deposit such sum which shall be a minimum of 20% of the fine or compensation awarded by the Trial Court.

(c): No such data is centrally maintained.

(d): In order to reduce the pendency of cases in the courts, the Legal Services Institutions under the Legal Services Authorities Act, 1987, organise weekly / monthly and also Mega Lok Adalats. In addition to this, National Lok Adalats from Taluk level to Supreme Court levels are also organised to reduce the pendency of the courts.

Further, the Government has adopted a co-ordinated approach to assist judiciary for phased liquidation of arrears and pendency in judicial systems, which, inter-alia, involves better court infrastructure including computerisation, increase in the strength of subordinate judiciary and initiating policy and legislative measures in the areas prone to excessive litigation and emphasis on human resource development.

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