New Delhi, July 25 A staggering 44.7 lakh cheque bounce cases under the Negotiable Instruments Act (NIA), 1881 are currently pending in courts across India, with over 25.9 lakh of them unresolved for more than two years, according to data tabled in the Lok Sabha.
The figures, sourced from the National Judicial Data Grid (NJDG), reflect a persistent crisis in legal enforcement of financial instruments.
Responding to a question by MP Damodar Agrawal, Law Minister Arjun Ram Meghwal clarified that the NIA applies uniformly across socio-economic groups, refuting allegations that financial institutions exploit poor or illiterate individuals using cheque bounce provisions.
States such as Maharashtra (6.38 lakh pending), Rajasthan (6.29 lakh), and Gujarat (5.15 lakh) lead in volume, while Delhi alone accounts for over 4.6 lakh cases.
Notably, Madhya Pradesh -- the home state of the MP who raised the query -- was omitted from the report without explanation, as were data sets from Jammu and Kashmir, Ladakh, Mizoram, and Manipur.
In total, over 1.22 million cases were registered under the Act in 2024, a steady rise from 967,595 in 2021, highlighting both increased financial transactions and mounting challenges in enforcement.
Disposal rates vary widely, with states like Gujarat achieving near-parity in registration and disposal, while others like Uttar Pradesh and Bihar show deep deficits.
He emphasised that Section 143 of the Act mandates speedy summary trials, ideally within six months -- an aspiration far removed from prevailing delays.
Legal experts point to systemic inefficiencies, shortage of judicial manpower, and procedural adjournments as key reasons for the backlog.
Meanwhile, citizen rights advocates argue that prolonged trials disproportionately burden small borrowers and rural entrepreneurs, for whom legal fees and time can outweigh the original transaction.
The government has not indicated any legislative amendments but stressed continued reliance on judicial best practices to expedite resolution.
With over half of the pending cases lingering beyond two years, the credibility of India’s financial and legal accountability framework faces an enduring test.
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