INDIAN BANK ASSOCIATION Vs. UNION OF INDIA
LAWS(SC)-2014-4-115
SUPREME COURT OF INDIA
Decided on April 21,2014

INDIAN BANK ASSOCIATION Appellant
VERSUS
UNION OF INDIA Respondents





Cited Judgements :-

MAHESH CHANDRA AGARWAL VS. STATE OF UTTARAKHAND [LAWS(UTN)-2022-5-84] [REFERRED TO]
METERS AND INSTRUMENTS PRIVATE LIMITED VS. KANCHAN MEHTA [LAWS(SC)-2017-10-1] [REFERRED TO]
SHANTI MERCHANDISE PRIVATE LIMITED VS. VIDEOCON INDUSTRIES LIMITED [LAWS(P&H)-2014-11-502] [REFERRED]
MAMTA DILIPBHAI RANA VS. STATE OF GUJARAT [LAWS(GJH)-2022-12-1671] [REFERRED TO]
SBI GLOBAL FACTORS LIMITED VS. THE STATE OF MAHARASHTRA [LAWS(BOM)-2021-3-113] [REFERRED TO]
MODELAMA EXPORTS LTD VS. TRIMURTI EXPORTS [LAWS(DLH)-2015-3-524] [REFERRED TO]
MODERN DENIM LIMITED VS. STATE OF GUJARAT [LAWS(GJH)-2015-3-112] [REFERRED TO]
M/S. GNANEE BUSINESS CORPORATION, SHIMOGA VS. M/S. AKSHATA MINERALS PVT. LTD., HOSPETE AND OTHERS [LAWS(KAR)-2016-9-21] [REFERRED TO]
MANZOOR AHMED KHAN VS. SHRI S.M. KHATOTRA [LAWS(J&K)-2017-7-9] [REFERRED TO]
RAKESH SINGH VS. ANIL MADANMOHAN GULATI [LAWS(BOM)-2023-5-8] [REFERRED TO]
RAJAN ADALKHA VS. MERLIN HYDRAULICS PVT. LTD. [LAWS(KAR)-2023-7-746] [REFERRED TO]
RAJASHEKHAR VS. MAHADEV LEASING FINANCE CO. [LAWS(KAR)-2023-1-262] [REFERRED TO]
JASPAL SINGH VS. ANIL [LAWS(KAR)-2022-6-1275] [REFERRED TO]
RAM DHARI PAL VS. STATE OF U.P. [LAWS(ALL)-2023-10-56] [REFERRED TO]
HARISH YADAV VS. STATE OF U.P. [LAWS(ALL)-2024-4-36] [REFERRED TO]
CREATIVE PROPERTY DEVELOPERS PVT LTD AND ANOTHER VS. STATE OF WEST BENGAL AND ANOTHER [LAWS(CAL)-2016-9-75] [REFERRED]
NEW DELHI TELE TECH PVT. LTD. VS. CISCO SYSTEMS CAPITAL (INDIA) PVT. LTD. [LAWS(DLH)-2015-1-81] [REFERRED TO]
M/S. SRI RENGAS AVITTA GARMENTS AND OTHERS VS. R. INDIRA [LAWS(MAD)-2018-4-964] [REFERRED TO]
DUSHYANT KUMAR AGARWAL VS. STATE OF UTTARAKHAND [LAWS(UTN)-2022-12-30] [REFERRED TO]
MOHAMMAD SHAHBAN UL HAQ VS. STATE OF UTTARAKHAND [LAWS(UTN)-2022-7-42] [REFERRED TO]
M.A. CONSTRUCTION THROUGH PROPRIETOR ASLAM VS. AJAY KUMAR KATIYAN [LAWS(UTN)-2022-7-58] [REFERRED TO]
DECCAN CHRONICLES HOLDINGS LTD AND OTHERS VS. RELIGARE FINVEST LTD [LAWS(P&H)-2014-10-313] [REFERRED]
VIKAS RAHEJA VS. PARMOD KUMAR [LAWS(P&H)-2015-1-457] [REFERRED TO]
SAI AUTO AGENCIES VS. HEMANT AMBADAS BAJAD [LAWS(BOM)-2022-8-54] [REFERRED TO]
HUBTOWN LIMITED VS. ASHOK COMMERCIAL ENTPERISE [LAWS(BOM)-2023-1-90] [REFERRED TO]
CHANDRASHKHAR VS. SAMYUKTA AGRI TECH PVT. LTD. [LAWS(KAR)-2023-7-1169] [REFERRED TO]
DAYARAM PMNANI VS. VIJAY ANAND [LAWS(MPH)-2024-1-101] [REFERRED TO]
RAVINDER C.P. NAVELKAR VS. ARUNA INFRACON PVT. LTD. AND ORS. [LAWS(DLH)-2015-8-382] [REFERRED TO]
EMBRION ART SURAT LLP VS. STATE OF GUJARAT [LAWS(GJH)-2021-9-681] [REFERRED TO]
MAKWANA MANGALDAS TULSIDAS VS. STATE OF GUJARAT [LAWS(SC)-2020-3-81] [REFERRED TO]
ASLAM VS. JULFKAAR [LAWS(UTN)-2022-7-54] [REFERRED TO]
BALWANT RAI ARORA VS. SWEETY GUPTA [LAWS(UTN)-2022-8-22] [REFERRED TO]
AMRITPAL SINGH VS. RAHUL AHUJA [LAWS(P&H)-2020-3-234] [REFERRED TO]
LAKSHMI PADMA PRIYA ANJANA DEVI THALLAM VS. STATE OF ANDHRA PRADESH [LAWS(APH)-2022-4-9] [REFERRED TO]
MANTRI DEVELOPERS PRIVATE LIMITED VS. M/S AAYAS TRADE SERVICES PRIVATE LIMITED [LAWS(KAR)-2021-3-185] [REFERRED TO]
DAYAWATI VS. YOGESH KUMAR GOSAIN [LAWS(DLH)-2017-10-82] [REFERRED TO]
ANURAG SINGHAL VS. ANOOP MAURYA [LAWS(UTN)-2022-6-1] [REFERRED TO]
RAKESH KUMAR AGARWAL VS. JAGVIR SINGH [LAWS(UTN)-2022-6-2] [REFERRED TO]
MUKESHBHAI ISHWARBHAI PRAJAPATI VS. STATE OF GUJARAT [LAWS(GJH)-2014-12-140] [REFERRED TO]
GURBAKHSH SINGH VS. M.A.S. PHARMACEUTICAL PVT. LTD. [LAWS(P&H)-2022-7-269] [REFERRED TO]
RAJUL KETAN RAJ VS. RELIANCE CAPITAL LTD [LAWS(BOM)-2016-2-139] [REFERRED TO]
KISHOR BIRADMAL BHANDARI VS. CHANDRAKANT KRISHNA GAWAS [LAWS(BOM)-2023-8-569] [REFERRED TO]
R.SEKAR VS. STATE [LAWS(MAD)-2024-3-97] [REFERRED TO]
UNIQUE INFOWAYS PVT. LTD. VS. MPS TELECOM PRIVATE LIMITED [LAWS(DLH)-2019-3-324] [REFERRED TO]
ISH MEDICOS VS. BABA THAKKAR [LAWS(UTN)-2022-5-31] [REFERRED TO]
MAHAVEER VS. STATE OF RAJASTHAN [LAWS(RAJ)-2022-9-4] [REFERRED TO]
MAHATHRU TECHNOLOGIES VS. CREATIVE INFOTECH [LAWS(KAR)-2020-11-347] [REFERRED TO]
RAMAVATAR AGRAWAL S/O LATE SHRI JAGMOHANDAS AGRAWAL VS. SHIV KUMAR @ JAWAHAR SARAF S/O MOTI LAL SARAF [LAWS(CHH)-2016-12-36] [REFERRED TO]
BABURAO CHINCHANASUR VS. ANJANA A. SHANTHAVEER [LAWS(KAR)-2017-3-14] [REFERRED TO]
RENUKA VS. SHAKUNTALA [LAWS(KAR)-2023-5-440] [REFERRED TO]
PRABHAKAR VS. SHREE. BASAVESHWAR URBAN CREDIT SAUHARD SAHAKARI LIMITED [LAWS(KAR)-2023-7-882] [REFERRED TO]
RANDEEP KAUR VS. AYUSH SIBAL [LAWS(DLH)-2017-9-241] [REFERRED TO]
BRIGHT GLASS TRADERS VS. T.M.HARDWARES [LAWS(KER)-2017-5-69] [REFERRED TO]
ANOOP JACOB VS. STATE OF KERALA [LAWS(KER)-2021-4-96] [REFERRED TO]
SHANTAL KAMAT VS. MILIND LADU KERKAR [LAWS(BOM)-2023-10-128] [REFERRED TO]
J.V.BAHARUNI VS. STATE OF GUJARAT [LAWS(SC)-2014-10-23] [REFERRED TO]
PRABHUDAS PANJAINMAL RICE AND DAL MILL VS. AVON TRADELINK [LAWS(MPH)-2021-9-99] [REFERRED TO]
RUKMAKAR @ BHARAT TULSHIDAS NAIK VS. SANTOSH SHABA GAONKAR [LAWS(BOM)-2019-4-251] [REFERRED TO]
PRAKASH NANJI THAKKAR VS. STATE OF MAHARASHTRA [LAWS(BOM)-2019-7-298] [REFERRED TO]
PARESH BANDEKAR VS. RAJARAM D SATARDEKAR [LAWS(BOM)-2021-2-149] [REFERRED TO]
M/S JILCO SECURITIES LTD. VS. DINESH NAVINCHAND DESAI [LAWS(CAL)-2014-7-158] [REFERRED TO]
S.S. BINU VS. STATE OF WEST BENGAL & ANR. [LAWS(CAL)-2018-5-6] [REFERRED TO]
HARPREET SINGH VS. STATE (GOVT OF NCT OF DELHI) [LAWS(DLH)-2015-1-67] [REFERRED TO]
RAJNI DHINGRA VS. SANJEEV CHUGH [LAWS(P&H)-2019-11-370] [REFERRED TO]
K. PAVITHRAN VS. K. GANESAN [LAWS(MAD)-2015-6-62] [REFERRED TO]
OLWEL CONSTRUCTION VS. SHREE GANESH CONSTRUCTION [LAWS(BOM)-2024-4-105] [REFERRED TO]
AFZAL PASHA VS. MOHAMED AMEERJAN [LAWS(KAR)-2016-8-131] [REFERRED]
SREELAL VS. MURALI MENON [LAWS(KER)-2014-7-113] [REFERRED TO]
STAR PVG EXPORTS VS. SRINIVASA MINERALS TRADERS PVT. LTD. [LAWS(KAR)-2019-6-133] [REFERRED TO]
RAM GOPAL AUTOMOBILES, DIST AURANGABAD VS. STATE OF MAHARASHTRA [LAWS(BOM)-2017-11-427] [REFERRED TO]
M. KOTESWARA RAO VS. STATE AND ORS. [LAWS(APH)-2015-11-38] [REFERRED TO]
SRI LAKSHMI AGENCIES, VIJAYAWADA REP. BY ITS PARTNER B.SUDHAKAR AND ANOTHER VS. THE STATE OF ANDHRA PRADESH REP. BY ITS PUBLIC PROSECUTOR, AND OTHER [LAWS(APH)-2015-6-128] [REFERRED TO]
RAKESHBHAI MAGANBHAI BAROT VS. STATE OF GUJARAT [LAWS(GJH)-2019-1-21] [REFERRED TO]
ANUP LODHA AND ORS. VS. THE STATE OF WEST BENGAL AND ORS. [LAWS(CAL)-2015-7-112] [REFERRED TO]
CISCO SYSTEMS CAPITAL (INDIA) PVT. LTD. VS. NEW DELHI TELE TECH PVT. LTD. AND ORS. [LAWS(DLH)-2015-1-313] [REFERRED TO]
SIDHARTH CHAUHAN VS. ADITYA BIRLA REAL ESTATE FUND [LAWS(BOM)-2019-7-116] [REFERRED TO]
PRAKASH NANJI THAKKAR VS. STATE OF MAHARASHTRA [LAWS(BOM)-2019-8-92] [REFERRED TO]
LALIT JASWAL VS. SARBJEET SINGH [LAWS(HPH)-2022-11-60] [REFERRED TO]
SANGRAMBHAI BHAGUBHAI BHARWAD VS. STATE OF GUJARAT [LAWS(GJH)-2022-12-1840] [REFERRED TO]
SHAKTI VS. LAAB KAUR [LAWS(MPH)-2018-11-127] [REFERRED TO]
RAJENDRA KUMAR SAHOO VS. RAMAKANTA SAHOO [LAWS(ORI)-2014-8-79] [REFERRED TO]
SHYAM PRAKASH BODHI VS. STATE OF U.P. [LAWS(ALL)-2024-3-46] [REFERRED TO]
SHIVAJI VS. BELAGAVI DISTRICT WHOLESALE VEGETABLEL G S P CO-OP SOCIETY [LAWS(KAR)-2020-9-509] [REFERRED TO]
SHRUTI FASHION WEAR VS. STATE OF UTTARAKHAND [LAWS(UTN)-2022-8-25] [REFERRED TO]
HARIHAR POLYMERS VS. SABSONS AGENCIES PRIVATE LIMITED [LAWS(P&H)-2021-11-190] [REFERRED TO]
YOGITA VS. HISAR METAL INDUSTRIES LIMITED [LAWS(P&H)-2019-1-77] [REFERRED TO]
KARMAYOGI SHANKARRAOJI PATIL VS. RUIA AND RUIA PVT. LTD [LAWS(BOM)-2022-8-7] [REFERRED TO]
K. REMIL VS. T.P. SASIDHARAN [LAWS(MAD)-2015-2-446] [REFERRED TO]
P.J. KUNJUMON VS. EDWIN TOMSON [LAWS(KER)-2017-9-68] [REFERRED TO]
PRAKASH KUNHIPAILY PAUL VS. ANILA MOL AUGUSTINE [LAWS(KER)-2018-9-168] [REFERRED TO]
AREEPLAVAN FINANCE VS. STATE OF KERALA REPRESENTED BY THE PUBLIC PROSECUTOR, HIGH COURT OF KERALA, ERNAKULAM [LAWS(KER)-2019-1-146] [REFERRED TO]
SUNIL AGARWAL VS. SUNIL GUPTA [LAWS(DLH)-2019-12-94] [REFERRED TO]
MANIDHARI STAINLESS WIRES PVT. LTD VS. MERCURY METAL INDUSTRIES [LAWS(BOM)-2022-8-181] [REFERRED TO]
P.T.JOY VS. K.V.SIVASANKARAN [LAWS(KER)-2020-3-228] [REFERRED TO]
VIRAL ENTERPRISES VS. STATE OF MAHARASHTRA [LAWS(BOM)-2024-6-17] [REFERRED TO]
SYED ASIF ALI VS. STATE OF U.P. [LAWS(ALL)-2021-3-160] [REFERRED TO]
AGRAWAL FUEL CORPARATION PVT VS. STATE OF U.P. [LAWS(ALL)-2019-10-156] [REFERRED TO]
AJAY KUMAR VS. STATE GOVT OF NCT OF DELHI & ORS [LAWS(DLH)-2019-1-38] [REFERRED TO]
MAHANTESH BHEEMAPPA HALOLLI VS. MANJUNATH SATHYAPPA KUNDAGOL [LAWS(KAR)-2023-7-1082] [REFERRED TO]
G.H.ABDUL KADRI VS. MOHAMMED IQBAL [LAWS(KAR)-2022-5-96] [REFERRED TO]
VIJAY MALLYA VS. G M R HYDERABAD INTERNATIONAL AIRPORT LTD [LAWS(APH)-2014-9-90] [REFERRED TO]
LAKSHMI AGENCIES, VIJAYAWADA VS. STATE OF ANDHRA PRADESH [LAWS(APH)-2015-6-10] [REFERRED TO]
JAGDEEP SINGH VS. RAMESH SINGH [LAWS(HPH)-2019-11-265] [REFERRED TO]
ANU SHARMA VS. PUNJAB NATIONAL BANK [LAWS(HPH)-2019-8-33] [REFERRED TO]
UNITED TELESERVICES PVT. LTD. VS. CELESTIAL TECH VATES LTD. [LAWS(DLH)-2014-9-121] [REFERRED TO]
KAMALKISHOR SHRIGOPAL TAPARIA VS. INDIA ENER-GEN PRIVATE LIMITED [LAWS(BOM)-2019-8-73] [REFERRED TO]
TREND BAGS AND ANOTHER VS. STATE OF WEST BENGAL AND ANOTHER [LAWS(CAL)-2016-9-73] [REFERRED]
KAPIL PURI VS. R S ARORA [LAWS(P&H)-2014-12-466] [REFERRED]
PUNIT KUMAR AGARWAL VS. MAHESH CHANDRA AGARWAL [LAWS(UTN)-2022-5-74] [REFERRED TO]
LALIT KUMAR GULATI VS. KALANDI ORGANIC AND CHEMICALS, DEHRADUN [LAWS(UTN)-2022-7-39] [REFERRED TO]
SUDHIR KUMAR VS. VANDANA GOYAL [LAWS(UTN)-2022-7-70] [REFERRED TO]
RAJESHWAR DAYAL PAREEK VS. ALANKAR MARBLE AND GRENITE [LAWS(RAJ)-2023-4-119] [REFERRED TO]
VAIBHAV KHARE VS. KAMAL KISHORE ARYA [LAWS(MPH)-2020-8-457] [REFERRED TO]


JUDGEMENT

- (1.)This Writ Petition, under Article 32 of the Constitution of India, has been preferred by the Indian Banks' Association (IBA) along with Punjab National Bank and another, seeking the following reliefs :-
a. Laying down appropriate guidelines/directions to be followed by all Courts within the territory of India competent to try a complaint under Section 138 of the Negotiable Instruments Act, 1881 (the Act) to follow and comply with the mandate of Section 143 of the said Act read with Sections 261 to 265 of Criminal Procedure Code, 1973 (Cr.P.C.) for summary trial of such complaints filed or pending before the said Courts.

b. Issue a writ of mandamus for compliance with the guidelines of this Hon'ble Court indicating various steps to be followed for summary trial of complaints under Section 138 of the said Act and report to this Hon'ble Court.

c. Issue a writ of mandamus, directing the respondents, to adopt necessary policy and legislative changes to deal with cases relating to dishonor of cheqeus so that the same are expeditiously disposed off in accordance with the intent of the Act and the guidelines to be laid down by this Hon'ble Court.

(2.)The first petitioner, which is an Association of Persons with 174 banks/financial institutions as its members, is a voluntary association of banks and functions as think tank for banks in the matters of concern for the whole banking industry. The Petitioners submit that the issue raised in this case is of considerable national importance owing to the reason that in the era of globalization and rapid technological developments, financial trust and commercial interest have to be restored.
(3.)The Petitioners submit that the banking industry has been put to a considerable disadvantage due to the delay in disposing of the cases relating to Negotiable Instruments Act. The Petitioner banks being custodian of public funds find it difficult to expeditiously recover huge amount of public fund which are blocked in cases pending under Section 138 of the Negotiable Instruments Act, 1881. Petitioners submit that, in spite of the fact, Chapter XIV has been introduced in the Negotiable Instruments Act by Section 4 of the Banking, Public Financial Institutions and Negotiable Instruments Laws (Amendment) Act, 1988, to enhance the acceptability of cheques in settlement of liability by making the drawer liable for penalties in case of bouncing of cheques due to insufficiency of funds, the desired object of the Amendment Act has not achieved.


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