Case: Sanjabij Tari v. Kishore S. Borcar & Anr.
Citation: 2025 INSC 1133
The Hon’ble Supreme Court of India in the recent judgment of Sanjabij Tari v. Kishore S. Borcar & Anr., 2025 INSC 1133, addressed the increasing concern regarding the enormous pendency and delay in disposal of cheque dishonour cases filed under Section 138 of the Negotiable Instruments Act, 1881.
The Court observed that the purpose behind introducing Section 138 of the Negotiable Instruments Act was not merely to punish the drawer of a dishonoured cheque, but to maintain confidence in commercial transactions and ensure credibility of cheques as a reliable mode of payment.
The Supreme Court recognised that a major reason for delay in cheque bounce litigation is procedural difficulties, particularly delay in service of summons upon the accused. Considering the large number of pending cases, the Court emphasised the need for practical reforms so that complainants are able to obtain effective remedies within a reasonable period.
The Court issued several important directions to streamline proceedings under Section 138 NI Act. It directed that service of summons should not remain restricted only to traditional methods and permitted additional modes to ensure faster communication. The Court also encouraged the use of digital mechanisms and settlement-oriented procedures to reduce unnecessary continuation of proceedings.
Further, the Court highlighted that trial courts should follow the legislative intention behind Section 143 of the NI Act, which provides for summary trial of cheque dishonour complaints. Conversion of summary proceedings into regular summons trials should not be done mechanically and sufficient reasons must be recorded.
The judgment also encouraged early settlement and compounding of offences under Section 147 of the Negotiable Instruments Act, recognising that cheque bounce disputes primarily involve recovery of monetary claims rather than purely punitive consequences.
This judgment is a major step towards improving efficiency in cheque dishonour litigation. It balances the rights of complainants seeking recovery of legitimate dues with the need to prevent prolonged criminal trials.
The ruling strengthens commercial confidence by ensuring that proceedings under Section 138 NI Act remain a speedy and effective remedy, rather than becoming a lengthy litigation process.
For businesses, financial institutions and individuals, the judgment reinforces the importance of honouring financial commitments while ensuring that genuine claims arising from dishonoured cheques receive timely judicial attention.