Supreme Court directs on recommendations made by NALSA that ‘pre-mediation litigation may not be feasible’

The Supreme Court on 19th January 2021 in the Suo moto case on the expeditious case of dishonor cases under section 138 of Negotiable Instrument Act 1881 to reduce the high level of pendency of cases passed the directions stated that the recommendations made by the NALSA for the settlement for cheque bounce cases may not be feasible.

The case was presented to take into matter concern the issues related to the limitation in the cheque bounce cases in the pre-litigation process whereby the amicus curiae to the court MR. Advocate Sidharth Luthra presented before the bench led by CJI SA  Bobde that as the NI Act provides strict compliance to the statutory time period, such recommendations made by NALSA can take place only after the cognizance and following the contention presented by the amicus curiae the supreme court thus ordered NALSA to address the concern raised and in reference of the same recommendations were made and the court directed NALSA then to make necessary changes and modify its recommendations.

The supreme court also directed that all the registrar general of all the high court and the director-general of police in all states/union territories to file the response to the report which is submitted by the amicus curiae with suggestions for the expeditious trial of cheque bounce cases under section 138 of negotiable Instrument Act.

The court also directed the officials to present before the court on the next date of hearing who fails to comply and give a response to the report of Adv. Luthra.

 

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