Supreme Court Issues Guidelines and index format to Fast-Track Cheque Bounce Cases

Case Title: Sanjabij Tari vs. Kishore S. Borcar & Anr
Case No.: Criminal Appeal No. 1755 of 2010
Citation: 2025 INSC 1158
Date of Judgment: September 25, 2025

Supreme Court of India

In a landmark ruling aimed at tackling India's massive backlog of cheque bounce cases, the Supreme Court has issued sweeping directions to streamline the handling of complaints under Section 138 of the Negotiable Instruments Act, 1881. The bench comprising Justice Manmohan and Justice N.V. Anjaria restored the conviction of the accused, Kishore S. Borcar, for issuing a dishonoured cheque, and simultaneously laid down a set of transformative procedural reforms for trial courts across the country.

The judgment came in Sanjabij Tari vs. Kishore S. Borcar & Anr. (Criminal Appeal No. 1755 of 2010), where the Court criticized the Bombay High Court's ex parte acquittal of the accused and reinstated the earlier concurrent convictions by the Trial and Sessions Courts. The apex court ruled that once the execution of a cheque is admitted, strong statutory presumptions under Sections 118 and 139 of the NI Act automatically arise, which can only be rebutted through credible evidence - not mere assertions.

Highlighting the staggering pendency of cheque bounce cases - 6.5 lakh in Delhi, 2.6 lakh in Kolkata, and 1.17 lakh in Mumbai - the Court directed all High Courts and District Courts to implement new digital and procedural mechanisms by November 1, 2025.

Key Directives Issued by the Supreme Court

Multi-mode Summons:

Summons to be served not only through post but also electronically via email or messaging apps, backed by affidavits of service.

Online Payment Gateways:

District Courts to create QR code or UPI-based systems enabling accused persons to pay cheque amounts directly.

Mandatory Complaint Synopsis:

Every complaint must carry a standardised synopsis summarising cheque details, dishonour date, and notice particulars.

No Pre-Cognizance Summons:

Trial courts need not issue summons before taking cognizance under BNSS 2023.

Revised Compounding Costs:

Offenders paying the cheque amount early may now compound offences with reduced penalties - from zero cost at trial stage to 10% at the Supreme Court level.

Dashboards and Oversight:

High Courts of Delhi, Bombay, and Calcutta must create monitoring committees and dashboards tracking NI Act case pendency and disposal.

Emphasizing that Section 138 offences are "a civil sheep in a criminal wolf's clothing," the Court reaffirmed that the intent of the law is not punishment but ensuring the reliability of cheques as a substitute for cash.
"D. Each and every complaint under Section 138 of the NI Act shall contain a synopsis in the following format which shall be filed immediately after the index (at the top of the file) i.e. prior to the formal complaint:-

"Complaint under Section 138 of the Negotiable Instruments Act, 1881
I. Particulars of the Parties
(i) Complainant: ____________
(ii) Accused: ____________
(In case where the accused is a company or a firm then Registered Address, Name of the Managing Director/Partner, Name of the signatory, Name of the persons vicariously liable)

II. Cheque Details
(i) Cheque No. ____________
(ii) Date: ____________
(iii) Amount: ____________
of Return/Dishonour Memo: ____________

(iii) Branch where cheque was dishonoured:_________

(iv) Reason for Dishonour: ____________

IV. Statutory Notice
(i) Date of Notice: ____________
(ii) Mode of Service: ____________
(iii) Date of Dispatch & Tracking No.: ____________
(iv) Proof of Delivery & date of delivery: ____________
(v) Whether served:____________________
(vi) If Not, reasons thereof:________________
(vii) Reply to the Legal Demand Notice, if any_______________

V. Cause of Action
(i) Date of accrual: ____________
(ii) Jurisdiction invoked under Section 142(2): ____________
(iii) Whether any other complaint under section 138 NI Act is pending between the same parties, If Yes, in which court and the date and year of the institution.

VI. Relief Sought
(i) Summoning of accused and trial under Section 138 NI Act__________
(ii) Whether Award of Interim compensation under Section 143A of NI Act sought _____

VII. Filed through:
Complainant/Authorized Representative...."

"F. Since the object of Section 143 of the NI Act is quick disposal of the complaints under Section 138 by following the procedure prescribed for summary trial under the Code, this Court reiterates the direction of this Court in In Re: Expeditious Trial of cases under Section 138 of NI Act (supra) that the Trial Courts shall record cogent and sufficient reasons before converting a summary trial to summons trial. To facilitate this process, this Court clarifies that in view of the judgment of the Delhi High Court in Rajesh Agarwal vs. State and Anr., 2010 SCC OnLine Del 2511, the Trial Court shall be at liberty (at the initial post cognizance stage) to ask questions, it deems appropriate, under Section 251 Cr.P.C. / Section 274 BNSS, 2023 including the following questions:-

(i) Do you admit that the cheque belongs to your account? Yes/No

(ii) Do you admit that the signature on the cheque is yours? Yes/No

(iii) Did you issue/deliver this cheque to the complainant? Yes/No

(iv) Do you admit that you owed liability to the complainant at the time of issuance? Yes/No

(v) If you deny liability, state clearly the defence:

(a) Security cheque only;

(b) Loan repaid already;

(c) Cheque altered/misused;

(d) Other (specify).

(vi) Do you wish to compound the case at this stage? Yes/No

G. The Court shall record the responses to the questions in the ordersheet in the presence of the accused and his/her counsel and thereafter determine whether the case is fit to be tried summarily under Chapter XXI of the Cr.P.C. / Chapter XXII of the BNSS, 2023."

The Court directed that these reforms be implemented by November 1, 2025, calling them vital to "restore trust in financial transactions and relieve the judiciary from crippling arrears of cheque dishonour cases."

Sanjabij Tari vs. Kishore S. Borcar & Anr

Supreme Court Issues Guidelines and index format to Fast-Track Cheque Bounce Cases

Key Directives Issued by the Supreme Court

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