Banks clogging judicial system: court report

His fears are not unfounded. The Indian Express has access to an internal report prepared by the Delhi High Court, which highlights how the subordinate judiciary is collapsing under the weight of such cases. As of June 1, 2008, out of a total backlog of 7,66,974 criminal cases pending in all four district courts (excluding the newly opened court in Saket) in the Capital, 5,14,533 are cases of bounced cheques instituted under Section 138 of the NI Act — nearly two-thirds of the total pendency of magistrate courts in the national Capital.

There are 110 courts of metropolitan magistrates spread across four district courts here dealing with several of these cases. Even more unfortunate is the number of judicial officers burdened with disposing of these cases. The report points out, “Thirty-two courts are exclusively dealing with Section 138 NI Act cases, with five at Patiala House, eight in Rohini courts, three and six each at Tis Hazari and Karkardooma courts respectively”. Fifty per cent of the 32 courts that exclusively handle cheque bouncing cases are burdened with complaints where the amount is not more than Rs 50,000.

In tune with CJI Balakrishnan’s remarks, the majority of these cases are filed by banking and financial institutions. As on February 29, 2008, the total pendency of such cases was 3,66,197. The number, as of date, has now risen to 4,28,498.

Incidentally, one of the most prolific litigants burdening these courts is ICICI Bank, which has 83,523 cases pending in four district courts, reveals the Delhi High Court report.

Even government-owned banking and financial institutions are not far behind in adding to these courts’ burden. For instance, the State Bank of India has close to 20,000 cases pending in three district courts.

With Section 138 NI Act cases forming the majority chunk of arrears in district courts, the HC has for the first time, suggested transfer of all these cases to Dwarka district court, which is to come up soon.

It has been proposed that a “separate category of cases involving financial institutions and banking companies” be allocated to special courts to be made functional at Dwarka Court complex.”

Taking into account the anomaly that bounced cheque complaints, unlike other criminal or civil cases in Delhi are not filed according to districts or police stations, it has been recommended that all complaints under Section 138 NI Act be filed and allocated district wise.