JUDGEMENT
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(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.