Lok Sabha Question No. 3588 (UNSTARRED), answered on 2018-03-16
Subject: Cheque Bounce Cases
Ministry: FINANCE
Asked by: Tejpratap Singh,Yadav, ANJU BALA, B. SREERAMULU

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## UNSTARRED QUESTION NO. 3588 TO BE ANSWERED ON FRIDAY, MARCH 16, 2018/PHALGUNA 25, 1939 (SAKA) CHEQUE BOUNCE CASES

## 3588. SHRI TEJ PRATAP SINGH YADAV: SHRI B. SRIRAMULU: SHRIMATI ANJU BALA:

Will the Minister of FINANCE be pleased to state:

- (a) whether the number of cases relating to cheque bounce are on the rise in the country, if so, the details thereof along with the cases pending in various courts, Court/ Bank/ State/ UTwise;
- (b) whether  the  Government  proposes  to  amend  the  Negotiable  Instruments  Act,  1881  to prevent cheque bounce cases and if so, the details thereof;
- (c) whether  the  cheque  related  frauds  have  also  increased  manifolds  and  if  so,  the  details thereof during the last three years, State/UT-wise; and
- (d) the steps being taken by the Government to curb the menace of cheque bounce and fraud in the country?

## ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SHIV PRATAP SHUKLA)

(a): Information  with  regard  to  the  disposal  of  cases  under  Section  138  of  Negotiable Instruments Act, 1881 in National Lok Adalats organised by National Legal Services Authority of India (NALSA) during the year 2017 is at Annex.

(b): In order to increase the credibility of the cheque as a financial instrument, and to help trade and commerce in general by allowing lending institutions, including banks, to continue to extend financing  to  the  productive  sectors  of  the  economy,  the  Government  has  introduced  the Negotiable Instruments (Amendment) Bill, 2017 in Lok Sabha on 20.02.2018. The Bill provides for an interim compensation of a sum not exceeding 20% of the amount of the cheque to the payee at the Trial stage. Further, the Appellate Court may order the appellant to deposit such sum which shall be a minimum of 20% of the fine or compensation awarded by the Trial Court.

(c): No such data is centrally maintained.

(d): In order to reduce the pendency of cases in the courts, the Legal Services Institutions under the Legal Services Authorities Act, 1987, organise weekly / monthly and also Mega Lok Adalats. In  addition  to  this,  National  Lok  Adalats  from  Taluk  level  to  Supreme  Court  levels  are  also organised to reduce the pendency of the courts.

Further,  the  Government  has  adopted  a  co-ordinated  approach  to  assist  judiciary  for  phased liquidation  of  arrears  and  pendency  in  judicial  systems,  which,  inter-alia,  involves  better  court infrastructure  including  computerisation,  increase  in  the  strength  of  subordinate  judiciary  and initiating policy and legislative measures in the areas prone to excessive litigation and emphasis on human resource development.

## Annex

## Disposal of Negotiable Instruments Act U/S 138 cases in National Lok Adalats organised during the year 2017

Amount in (Rs.)

| S. No.   | Name of the State Legal Services Authorities (SLSAs)   | Pre-Litigation Cases   | Pre-Litigation Cases   | Pending Cases   | Pending Cases     | Total Disposal   | Total Settlement Amount in (Rs.)   |
|----------|--------------------------------------------------------|------------------------|------------------------|-----------------|-------------------|------------------|------------------------------------|
|          |                                                        | Disposed of            | settlement amount      | Disposed of     | settlement amount |                  |                                    |
| 1        | Andhra Pradesh                                         | 1                      | 0                      | 2559            | 441326065         | 2560             | 441326065                          |
| 2        | Arunachal Pradesh                                      | 1                      | 180000                 | 3               | 934000            | 4                | 1114000                            |
| 3        | Assam                                                  | 214                    | 10377372               | 437             | 35646904          | 651              | 46024276                           |
| 4        | Bihar                                                  | 0                      | 0                      | 117             | 15503496          | 117              | 15503496                           |
| 5        | Chhattisgarh                                           | 6                      | 288000                 | 1544            | 154882503         | 1550             | 155170503                          |
| 6        | Goa                                                    | 417                    | 8779388                | 417             | 21747595          | 834              | 30526983                           |
| 7        | Gujarat                                                | 305                    | 33275850               | 40438           | 4974966993        | 40743            | 5008242843                         |
| 8        | Haryana                                                | 1286                   | 22871157               | 4742            | 251109166         | 6028             | 273980323                          |
| 9        | Himachal Pradesh                                       | 0                      | 0                      | 2197            | 177550746         | 2197             | 177550746                          |
| 10       | Jammu & Kashmir                                        | 54                     | 4677003                | 215             | 23194086          | 269              | 27871089                           |
| 11       | Jharkhand                                              | 609                    | 27068087               | 970             | 60121661          | 1579             | 87189748                           |
| 12       | Karnataka                                              | 39                     | 2527108                | 5567            | 1045619500        | 5606             | 1048146608                         |
| 13       | Kerala                                                 | 67                     | 2626931                | 823             | 73454299          | 890              | 76081230                           |
| 14       | Madhya Pradesh                                         | 450                    | 64425390               | 12177           | 1705052681        | 12627            | 1769478071                         |
| 15       | Maharashtra                                            | 712                    | 17934174               | 34566           | 13919170961       | 35278            | 13937105135                        |
| 16       | Manipur                                                | 0                      | 0                      | 4               | 985000            | 4                | 985000                             |
| 17       | Meghalaya                                              | 0                      | 0                      | 0               | 0                 | 0                | 0                                  |
| 18       | Mizoram                                                | 0                      | 0                      | 2               | 300000            | 2                | 300000                             |
| 19       | Nagaland                                               | 7                      | 438965                 | 0               | 0                 | 7                | 438965                             |
| 20       | Odisha                                                 | 151                    | 15473178               | 2714            | 327547828         | 2865             | 343021006                          |
| 21       | Punjab                                                 | 107                    | 14097739               | 11768           | 3019848365        | 11875            | 3033946104                         |
| 22       | Rajasthan                                              | 528                    | 46248039               | 23798           | 2465889089        | 24326            | 2512137128                         |
| 23       | Sikkim                                                 | 0                      | 0                      | 4               | 22000             | 4                | 22000                              |
| 24       | Tamil Nadu                                             | 37                     | 6692633                | 8229            | 2665692774        | 8266             | 2672385407                         |
| 25       | Telangana                                              | 0                      | 0                      | 1577            | 86805585          | 1577             | 86805585                           |
| 26       | Tripura                                                | 0                      | 0                      | 22              | 1319000           | 22               | 1319000                            |
| 27       | Uttar Pradesh                                          | 9                      | 50150                  | 6814            | 353263940         | 6823             | 353314090                          |
| 28       | Uttarakhand                                            | 0                      | 0                      | 1399            | 75224183          | 1399             | 75224183                           |
| 29       | West Bengal                                            | 0                      | 0                      | 41              | 88285120          | 41               | 88285120                           |
| 30       | Andaman & Nicobar Islands                              | 45                     | 2850238                | 3               | 240000            | 48               | 3090238                            |
| 31       | U.T. of Chandigarh                                     | 32                     | 268000                 | 1910            | 371457718         | 1942             | 371725718                          |
| 32       | Dadra & Nagar Haveli                                   | 0                      | 0                      | 36              | 7688471           | 36               | 7688471                            |
| 33       | Daman & Diu                                            | 0                      | 0                      | 10              | 9012753           | 10               | 9012753                            |
| 34       | Delhi                                                  | 86                     | 14352624               | 10282           | 903576590         | 10368            | 917929214                          |
| 35       | Lakshadweep                                            | 0                      | 0                      | 0               | 0                 | 0                | 0                                  |
| 36       | U.T. of Puducherry                                     | 0                      | 0                      | 158             | 15432988          | 158              | 15432988                           |
|          | TOTAL                                                  | 5163                   | 295502026              | 175543          | 33292872060       | 180706           | 33588374086                        |