Cheque Bounce Litigation Under Section 138 Of The Negotiable Instruments Act: A Critical Analysis Of Procedural Inefficiencies And The Need For Reform

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Kumar Kartikeya, PhD Scholar (Law), Research Scholar, Department of Law, NIMS, University

Dr Falak Bashir, Assistant Professor, Department of Law, NIMS University

ABSTRACT

Cheque dishonor litigation under Section 138 of the Negotiable Instruments Act, 1881 constitutes a substantial portion of criminal litigation in India. While the provision was introduced to ensure financial discipline and enhance the credibility of negotiable instruments, its implementation has resulted in large-scale judicial backlog and procedural inefficiencies. The increasing reliance on criminal prosecution for recovery of civil debts has raised concerns regarding proportionality and misuse of legal processes.

This paper critically analyses the statutory framework, judicial interpretation, and practical challenges associated with cheque bounce cases. It incorporates recent judicial developments and empirical insights to argue for a balanced reform model emphasizing decriminalization, mediation, and technological integration.

Keywords: Cheque Bounce; Section 138; Negotiable Instruments Act; Criminal Liability; Judicial Backlog; Financial Discipline; Commercial Litigation; Legal Reform

372. CHEQUE BOUNCE LITIGATION UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT- A CRITI

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