Lok Sabha Question No. 362 (UNSTARRED), answered on 2017-02-03
Subject: Cheque-Bounce Cases
Ministry: FINANCE
Asked by: PANKAJ CHOWDHARY

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

## LOK SABHA

## UNSTARRED QUESTION NO. 362 TO BE ANSWERED ON FRIDAY, FEBRUARY 3, 2017 / MAGHA 14, 1938 (SAKA) CHEQUE-BOUNCE CASES

## 362. SHRI PANKAJ CHAUDHARY:

Will the Minister of Finance be pleased to state:

- (a) whether the Government has formulated any policy to curb the rising incidence of cheque-bounce cases in the country;
- (b) if so, the details thereof;
- (c) the number of such cases pending in various courts bank/State/UT-wise;
- (d) whether  the  Government  proposes  to  amend  the  Negotiable  Instruments  Act  to prevent cheque bounce cases and if so, the details thereof; and
- (e) the other steps taken/being taken by the Government in this regard?

## ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SANTOSH KUMAR GANGWAR)

(a) and (b): The Government, inter-alia, has adopted a coordinated approach to assist judiciary for phased liquidation of arrears and pendency in judicial systems, which, interalia,  involves  better  infrastructure  for  courts  including  computerization,  increase  in strength of judicial officials / judges, policy and legislative measures in the areas prone to excessive litigation and emphasis on human resource development.

(c): A statement indicating the number of cases taken up and disposed through National Lok Adalats organized on bank matters / Section 138 of the NI Act and Recovery suits etc. held on 13.08.2016, as furnished by the National Legal Services Authority of India (NALSA) is Annexed.

(d): The  Finance  Minister in his  Budget  Speech  2017-18  has  made  following announcement  'As  we  move  faster  on  the  path  of  digital  transactions  and  cheque payments,  we  need  to  ensure  that  the  payees  of  dishonoured  cheques  are  able  to realise the payments. Government is therefore considering the option of amending the NI Act suitably.'

(e): To  address  the  difficulties  faced  by  the  payee  or  the  lender  of  the  money,  the Government enacted the Negotiable Instruments (Amendment) Act, 2015, which, interalia, clarifies the jurisdiction related issues for filing cases for offence committed under section 138 of the NI Act. The amendment helps the trade and commerce in general and allows the lending institutions, including banks, to continue to extend financing to the  productive  sectors  of  economy,  as  the  process  of  pursuing  the  cheque  bounces cases relating to loan default has been made simpler and efficient.

In order to reduce the pendency of cases in 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 are also organised in various subject matters including bank matters / Section 138 of the NI Act.

| S.No.   | Name of SLSA*                  |           |          |                       | Pre-Litigation Cases   | Pre-Litigation Cases   | Pre-Litigation Cases   | Total Taken Up   | Total Disposal   | Tot Settle Amoun   |
|---------|--------------------------------|-----------|----------|-----------------------|------------------------|------------------------|------------------------|------------------|------------------|--------------------|
| S.No.   | Name of SLSA*                  | Taken Up  | Disposal | Settlement Amount Rs. | Taken Up               | Disposal               | Settlement Amount Rs.  | Total Taken Up   | Total Disposal   | Tot Settle Amoun   |
| 1       | Andhra Pradesh                 | 8774      | 3269     | 90506769              | 11064                  | 6881                   | 265530889              | 19838            | 10150            | 356                |
| 2       | Arunachal Pradesh              | 826       | 116      | 18388811              | 243                    | 51                     | 0                      | 1069             | 167              | 18                 |
| 3       | Assam                          | 36621     | 4483     | 241937942             | 1885                   | 154                    | 16453253               | 38506            | 4637             | 258                |
| 4       | Bihar                          | 221203    | 35521    | 1564616189            | 2515                   | 1157                   | 51505782               | 223718           | 36678            | 1616               |
| 5       | Chhattisgarh                   | 59174     | 1717     | 58663850              | 1716                   | 162                    | 15850895               | 60890            | 1879             | 74                 |
| 6       | Goa                            | 1411      | 232      | 8914983               | 884                    | 300                    | 6155988                | 2295             | 532              | 15                 |
| 7       | Gujarat                        | 78702     | 11107    | 294276873             | 29266                  | 18498                  | 1286505792             | 107968           | 29605            | 1580               |
| 8       | Haryana                        | 6698      | 587      | 23659488              | 1620                   | 208                    | 27160616               | 8318             | 795              | 50                 |
| 9       | Himachal Pradesh               | 597       | 184      | 8978655               | 14751                  | 10520                  | 57188829               | 15348            | 10704            | 66                 |
| 10      | Jammu & Kashmir                | 1178      | 395      | 22636370              | 583                    | 126                    | 61217213               | 1761             | 521              | 83                 |
| 11      | Jharkhand                      | 25627     | 5966     | 262941382             | 669                    | 457                    | 31212128               | 26296            | 6423             | 294                |
| 12      | Karnataka                      | 39695     | 8458     | 362194082             | 30576                  | 19465                  | 256918686              | 70271            | 27923            | 619                |
| 13      | Kerala                         | 23664     | 7175     | 563444661             | 6891                   | 819                    | 98095195               | 30555            | 7994             | 661                |
| 14      | Madhya Pradesh                 | 191910    | 28395    | 332076804             | 20900                  | 1106                   | 384081732              | 212810           | 29501            | 716                |
| 15      | Maharashtra                    | 76240     | 2359     | 143594709             | 21883                  | 5496                   | 789690067              | 98123            | 7855             | 933                |
| 16      | Manipur                        | 939       | 579      | 17800733              | 30                     | 1                      | 0                      | 969              | 580              | 17                 |
| 17      | Meghalaya                      | 1164      | 198      | 4781639               | 2332                   | 264                    | 7926329                | 3496             | 462              | 12                 |
| 18      | Mizoram                        | 562       | 325      | 55126110              | 17                     | 2                      | 44750                  | 579              | 327              | 55                 |
| 19      | Nagaland                       | 442       | 94       | 13028337              | 10                     | 2                      | 137247                 | 452              | 96               | 13                 |
| 20      | Odisha                         | 57419     | 5307     | 161242274             | 18342                  | 1675                   | 220885478              | 75761            | 6982             | 382                |
| 21      | Punjab                         | 9098      | 2171     | 157613583             | 4652                   | 2191                   | 791456515              | 13750            | 4362             | 949                |
| 22      | Rajasthan                      | 49023     | 12343    | 208402538             | 19954                  | 1317                   | 143254314              | 68977            | 13660            | 351                |
| 23      | Sikkim                         | 91        | 38       | 3729605               | 4                      | 2                      | 265000                 | 95               | 40               | 3                  |
| 24      | Tamil Nadu                     | 87591     | 7126     | 726698075             | 0                      | 0                      | 0                      | 87591            | 7126             | 726                |
| 25      | Telangana                      | 11941     | 3382     | 74640389              | 5471                   | 4262                   | 386234838              | 17412            | 7644             | 460                |
| 26      | Tripura                        | 2025      | 322      | 18214968              | 14737                  | 4212                   | 1405600                | 16762            | 4534             | 19                 |
| 27      | Uttar Pradesh                  | 160764    | 60446    | 530567169             | 141983                 | 111179                 | 148030781              | 302747           | 171625           | 678                |
| 28      | Uttarakhand                    | 3188      | 445      | 30333175              | 2117                   | 165                    | 16888517               | 5305             | 610              | 47                 |
| 29      | West Bengal                    | 12457     | 2997     | 70221046              | 333                    | 284                    | 6447238                | 12790            | 3281             | 76                 |
| 30      | Andaman & Nicobar Islands U.T. | 644       | 52       | 8199000               | 0                      | 0                      | 0                      | 644              | 52               | 8                  |
| 31      | U.T. Chandigarh **             | 1404      | 63       | 18093684              | 8048                   | 7157                   | 25453956               | 9452             | 7220             | 43                 |
| 32      | Dadra & Nagar Haveli U.T.      | 160       | 5        | 63950                 | 43                     | 16                     | 618000                 | 203              | 21               |                    |
| 33      | Daman & Diu                    | 87        | 15       | 955447                | 14                     | 7                      | 68,232,500             | 101              | 22               | 69                 |
| 34      | Delhi                          | 4862      | 1017     | 57996388              | 7170                   | 4203                   | 1844419184             | 12032            | 5220             | 1902               |
| 35      | Lakshadweep***                 | 0         | 0        | 0                     | 0                      | 0                      | 0                      | 0                | 0                |                    |
| 36      | U.T. of Puducherry             | 1250      | 240      | 20895290              | 44                     | 19                     | 3900500                | 1294             | 259              | 24                 |
|         | TOTAL                          | 1,177,431 | 207,129  | 6,175,434,968         | 370,747                | 202,358                | 7,013,167,812          | 1,548,178        | 409,487          | 13,188,6           |

Note:

*  State Legal Services Authority (SLSA)

** High Court Legal Services Committee, Punjab & Haryana High Court has taken up 145 cases and no case has been setteled. The data has been included in the UT Chandigarh figure. *** No cases filed matter related to Bank in Lakshadweep SLSA