Cheque bounce: Supreme Court orders changes, what’s in store? 
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Cheque bounce: Supreme Court orders changes, what’s in store?

In a bid to strengthen confidence in the financial system, the Supreme Court is acting strictly on the cases of bounced cheques. The changes in store should deter unscrupulous entities from writing cheques they do not intend to honour.

So many cases pending

Right off the bat, in lower courts all over the nation, morethan 35 lakh cases of bounced cheque are pending. To an outsider, this mightappear as just another statistic, but to the person who has delivered his goodor service but not received payment, justice delayed is justice denied.

What is the apex court thinking?

The Supreme Court of India is moving in the direction wherea signed cheque is as solid as the currency the government prints.

To ensure this, defaulters - wilful or negligent - are to bepunished.

Changes

The changes are to enable a faster resolution of the pendingcases.

1. Under the Negotiable Instruments Act, clubbing all thepending cases together against a legal entity and attending to them as a singlecase in the Court is being recommended.

However, the cases which have been initiated in the last oneyear are eligible for the same.

2. Further, to expedite, in these cases the requirement tohave a witness is also being scrapped. In this regard, the High Courts all overthe nation have been instructed to handle the cases using affidavit.

Summary

Trust in any transaction is essential for the smoothfunctioning of economy and the society in general.

And the same leaves innocent and law-abiding people forexploitation by those who are willing to bypass the rules.

When the financial system of the country supports honestpeople and punishes dishonest individuals, then everyone benefits.

Thus, these initiatives by the Supreme Court are in theright direction.

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