SC Bench proposes fast-track courts to address pendency of cases due to dishonoured cheques

Subject: Polity

Context: The Constitution bench of the SC has proposed setting up of fast-track courts for a limited time to clear dishonoured cheque cases.

Concept:

Such cases account for almost 30% (35 lakh cheque bounce cases)of the backlogs across the country.
The court held that even retired judges could preside over these temporary additional courts to clear pending cheque case.
The SC referred to Art 247 of the Constitution: The government had both power and an obligation under Article 247 of the Constitution to set up additional courts to better the administration of laws enacted by the Parliament, including the Negotiable Instruments Act, which deals with cheques.

Recommendations of amici curiae

The court appointed amici curiae recommended Centre, Reserve Bank of India and the Indian Banks Association create a nodal service agency for effective service of summons through electronic process
Empowering local Magistrates to order attachment of the bank account of an absconding accused to the extent of the cheque amount.
Generating a unique number for a dishonour memo, which when fed into a system, would reveal the details of the account holder.