No Need For Pre-Cognizance Summons To Accused In S.138 NI Act Case : Supreme Court Issues Directions For Speedy Trial Of Cheque Bounce Cases

In a significant judgment, the Supreme Court held that an accused need not be heard at the pre-cognizance stage of complaints filed for dishonour of cheque as per Section 138 of the Negotiable Instruments Act.The Court agreed with the Karnataka High Court's judgment in Ashok Vs. Fayaz Aahmad, that there is no requirement to issue summons to the accused at the pre-cognizance stage under Section 223 of the Bharatiya Nagarik Suraksha Sanhita for NI Act complaints."Recently, the High Court of Karnataka in Ashok Vs. Fayaz Aahmad, 2025 SCC OnLine Kar 490 has taken the view that since NI Act is a special enactment, there is no need for the Magistrate to issue summons to the accused before taking cognizance (under Section 223 of BNSS) of complaints filed under Section 138 of NI Act. This Court is in agreement with the view taken by the High Court of Karnataka. Consequently, this Court directs that there shall be no requirement to issue summons to the accused in terms of Section 223 of BNSS i.e., at the pre-cognizance stage," the Court observed.The Supreme Court also issued a detailed set of directions aimed at ensuring the speedy disposal of cheque bounce cases under Section 138 of the Negotiable Instruments Act, 1881, stressing the need for efficiency, technology integration, and early settlement.A Bench comprising Justice Manmohan and Justice NV Anjaria noted that Section 138 cases constitute a significant portion of criminal dockets, particularly in metropolitan courts, and therefore require systemic reforms to avoid delays.Keeping in view the massive backlog of cheque bouncing cases and the fact that service of summons on the accused in a complaint filed under Section 138 of the NI Act continues to be one of the main reasons for the delay in disposal of the complaints as well as the fact that punishment under the NI Act is not a means of seeking retribution but is more a means to ensure payment of money and to promote credibility of cheques as a trustworthy substitute for cash payment, this Court issues the following directionsThe Court directed that summons in such cases should not be restricted to traditional modes of service but also be issued dasti through the complainant, and by electronic means such as email and WhatsApp, in accordance with rules under the Bhartiya Nagarik Suraksha Sanhita, 2023 (BNSS). Complainants will have to furnish verified contact details of the accused along with the complaint. An affidavit of service will also be mandatory, with penal consequences for false affidavits.Significantly, the Court ordered that dedicated online payment facilities through QR codes or UPI links be created in every District Court to enable accused persons to directly pay the cheque amount at the very outset. If such payment is made, courts may proceed to compound the case under Section 147 NI Act or close proceedings under Section 255 CrPC/278 BNSS.The judgment further requires every Section 138 complaint to be accompanied by a synopsis in a prescribed format setting out key details such as parties, cheque particulars, dishonour memo, statutory notice, cause of action and relief sought.It also reiterated that trial courts must record reasons before converting summary trials into summons trials, and may put questions to the accused at the initial stage under Section 251 CrPC/Section 274 BNSS, including whether the cheque is admitted, liability is disputed, or if the matter can be compounded.The Court also emphasised the need for physical hearings post-service of summons to encourage early resolution, while permitting digital hearings only at the pre-service stage. It recommended realistic pecuniary limits for evening courts, observing that Delhi's present cap of ₹25,000 was “too low.”To ensure accountability, the Court directed District and Sessions Judges in Delhi, Mumbai and Kolkata to maintain dedicated dashboards tracking pendency, disposal rates, adjournments and settlements in Section 138 cases, and to submit quarterly reports to the respective High Courts. Chief Justices of these High Courts have been requested to constitute committees to monitor progress, appoint experienced magistrates, and explore ADR mechanisms such as mediation and Lok Adalats.GUIDELINES ISSUEDThe guidelines issued in the judgment are extracted below :A. In all cases filed under Section 138 of the NI Act, service of summons shall not be confined through prescribed usual modes but shall also be issued dasti i.e. summons shall be served upon the accused by the complainant in addition. This direction is necessary as a large number of Section 138 cases under the NI Act are filed in the metropolitan cities by financial institutions, by virtue of Section 142(2) of the NI Act, against accused who may not be necessarily residing within the territorial jurisdiction of the Court where the complaint has been filed. The Trial Courts shall further resort to service of summons by electronic means in terms of the applicable...

No Need For Pre-Cognizance Summons To Accused In S.138 NI Act Case : Supreme Court Issues Directions For Speedy Trial Of Cheque Bounce Cases

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No Need For Pre-Cognizance Summons To Accused In S.138 NI Act Case : Supreme Court Issues Directions For Speedy Trial Of Cheque Bounce Cases

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