Cheque bounce cases (under Section 138 of the NI Act) are known to have delays, leaving complainants waiting for justice and businesses struggling to recover money. Recently, the Supreme Court of India has introduced several directions aimed at speedy disposal, easier service of summons, and settlement at an early stage.
Here’s what you need to know:
1. Faster Service of Summons
One of the main reasons cheque bounce cases get delayed is difficulty in serving summons to the accused ( Often the Complainants are stuck at this stage of litigation for more than 6 months which is frustrating but a hard hitting reality) . The Supreme Court now says:
- Summons should not be limited to the usual modes. Complainants can also serve “dasti” summons (personally delivered by the complainant).
- Courts should use electronic service like email, WhatsApp, or messaging apps.
- When filing the complaint, the complainant must provide the accused’s email, mobile, and messaging details along with an affidavit confirming their authenticity.
- After serving summons, the complainant must file an affidavit confirming service. If the affidavit is found false, the court may take strict action.
Tip for businesses: Keep accurate contact information for clients and debtors to avoid delays.
2. Easy Online Payments to Settle Cases
To reduce unnecessary litigation:
- Courts will create secure online payment links or QR codes.
- Accused can pay the cheque amount immediately through the link, which can lead to compounding or closure of the case.
- The complainant is informed instantly when the payment is made.
Why this helps: Cases can settle quickly without wasting court time.
3. No Pre-Cognizance Summons Needed
The High Court of Karnataka in Ashok Vs. Fayaz Aahmad. (2025) held that, under the NI Act, magistrates don’t need to issue summons before taking cognizance. The Supreme Court agrees. This removes an extra procedural step, speeding up the process.
(Cognizance of an offence means that a court formally takes notice of a criminal offence and decides that the case can proceed in the court. In other words, it is the point at which the court acknowledges that there is enough material to consider the matter seriously and begins legal proceedings.)
4. Summary Trial Questions
Courts can ask simple questions to the accused at the start of the trial to quickly determine liability and chances of settlement:
- Do you admit the cheque is yours?
- Do you recognize the signature?
- Did you issue/deliver the cheque to the complainant?
- Did you owe the complainant money when issuing the cheque?
- If denying liability, what is your defence? (e.g., security cheque, loan repaid, cheque altered)
- Do you wish to settle/compound the case now?
The court records the answers and decides if the case can proceed as a summary trial (faster procedure).
5. Interim Deposits
Courts can ask the accused to pay a part of the amount as an interim deposit, ensuring partial recovery even before the final judgment.
6. Physical Courts for Resolution
- After serving summons, cases should be listed in physical courts to encourage direct interaction and early settlement.
- Digital courts may be used only before service of summons.
7. Monitoring and Dashboards
- District courts in Delhi, Mumbai, and Kolkata must maintain dashboards showing case pendency, disposal rates, and settlements.
- Monthly and quarterly reviews ensure accountability.
- Experienced magistrates can be appointed, and mediation or Lok Adalats encouraged.
8. Summary
The Supreme Court’s directions aim to:
- Reduce delays in cheque bounce cases.
- Make service of summons easier and faster.
- Encourage early settlement through online payments or mediation.
- Ensure courts monitor progress and maintain accountability.
For businesses and individuals: These changes mean you can recover bounced cheque amounts faster, without long delays, while also having simpler legal procedures to follow.