SC - 30 TO 40% NEGOTIABLE INSTRUMENT MATTER PENDING, DIRECTED THE GOVT TO FORM COMMITTEE

4th March

The Supreme Court bench comprising Chief Justice of India SA Bobde, Justice AS Bopanna, and Justice V Ramasubhramanian was hearing a suo moto case initiated by it to find a mechanism to expedite trials of the NI Act.

The Supreme Court on Wednesday said that “there is a huge pendency of matters under the N.I. Act what now has become an intractable problem/accounting for close to 30 to 40 per cent of the pendency in the trial courts and a very high percentage in the High Courts also”. Therefore, the Court directed the Central Government to establish additional courts to better administration cases under the Negotiable Instrument Act, 1881. Article 247 of the constitution allows the parliament to establish an additional court for better administration of law.

The SC Bench rejected the Union Minister of Finance's memorandum suggesting alternatives rather than setting up additional courts for the NI act. The bench described the alternatives as “Not acceptable” while rejecting them.

Mr Banerjee, learned Additional Solicitor General appearing on behalf of the Union of India, suggested that the matter requires wide-ranging discussion of various stakeholders and officers and the secretaries of various Ministries who will find a mechanism to cut back pendency of the cases under N.I. Act. The Top Court found this suggestion acceptable and, therefore, directed the government to form a committee that will come with measures to reduce pendency. Mr Banerjee will come up with a list of names who could be part of the next hearing committee.

Author: Papiha Ghoshal