Summary
In the suo motu proceedings on expeditious trial of cheque-dishonour complaints under Section 138 of the Negotiable Instruments Act, 1881, the Court noted that all High Courts except Patna had complied with the Constitution Bench directions of 16.04.2021 and that pendency had risen from 26.07 lakh complaints in November 2021 to 33.44 lakh by April 2022. The Expert Committee had proposed de novo Special NI Courts under Article 247 needing 1,826 new judicial officers at a cost of Rs. 126.59 crores; the amici found this impracticable and proposed a pilot using retired judicial officers and court staff. The Court directed a one-year pilot study from 01.09.2022 in 25 Special Courts, one in each of the five highest-pendency districts of Maharashtra, Rajasthan, Gujarat, Delhi and Uttar Pradesh, presided over by retired judicial officers on contract, with detailed operational guidelines.
Issues
- How the backlog of over 33 lakh complaints under Section 138 of the Negotiable Instruments Act, 1881 should be addressed — by creating de novo Special NI Courts under Article 247 as the Expert Committee proposed, or by a pilot scheme of Special Magistrates' Courts under Sections 13 and 18 CrPC manned by retired judicial officers and court staff.
Provisions considered
- Sections 13 and 18 (Special Judicial and Metropolitan Magistrates), Code of Criminal Procedure, 1973Special Magistrates' Courts for trial of NI Act cases can be constituted under Sections 13 and 18 CrPC (Kadra Pahadiya v. State of Bihar), and retired public servants such as tehsildars and magistrates can be appointed as Special Judicial/Metropolitan Magistrates, with retired government and court staff operationalising the courts. (¶¶ 4, 5)
- Section 138, Negotiable Instruments Act, 1881Complaints under Section 138 constitute 8.81% of all pending criminal cases and 11.82% of criminal cases stagnating for service or appearance; the pilot Special Courts are to take up only the oldest cases in which summons have been served and the accused has appeared, after screening for mediation. (¶¶ 6, 10)
- Article 247 (Parliament's power to establish additional courts), Constitution of IndiaThe Expert Committee's proposal for de novo Special NI Courts under Article 247, with two grades of trial judges and two appellate grades, 1,826 new officers and a cost of Rs. 126.59 crores, was considered impracticable for immediate implementation; the pilot study was preferred to test the alternative. (¶¶ 3, 4, 7)
Held
- A pilot study shall run for one year from 01.09.2022 to 31.08.2023 in 25 Special Courts, one in each of the five highest-pendency judicial districts identified by the High Courts of Bombay, Rajasthan, Allahabad, Gujarat and Delhi, operationalised by retired judicial officers and retired court staff (preferably retired within five years) engaged on contract for a year on a fixed honorarium according to their pre-retirement standing, with infrastructure, video-conferencing facilities and personnel finalised by July 2022 and a four-week training programme by the State Judicial Academies together with a ready reckoner of governing case law. (¶¶ 7, 8, 10)
- The Special Courts shall take up only cases in which summons have been served and the accused has appeared, identified oldest-first, after the regular Magistrates have referred settleable cases to mediation; advance and weekly lists and working hours are to be notified by the end of July; the CrPC trial procedure applies, adjournments are not to be routinely granted, outstation witnesses may be examined online, and willingness to settle must be referred to time-bound online mediation before an identified panel of mediators. (¶ 10)
- Weekly disposal statements go to the Registrar General of the High Court concerned, who monitors the study, with quarterly statements to the Supreme Court; a Facilitation Officer may be appointed to collect data, curate cause lists and hold weekly review meetings. The five High Courts shall file compliance affidavits by 21.07.2022. (¶¶ 10, 11)
Result
Directions issued for a one-year pilot study (01.09.2022–31.08.2023) of 25 Special Courts for Section 138 NI Act cases in Maharashtra, Rajasthan, Gujarat, Delhi and Uttar Pradesh staffed by retired judicial officers and court staff; the five High Courts to file compliance affidavits by 21.07.2022; matter listed on 26.07.2022.