Delhi High Court Directs District Courts to Submit Reports on Compliance with Negotiable Instruments Act Protocols

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Synopsis

The court provided such directions to comprehend why a nine-month timeframe was assigned for the consideration of the case under Section 138 of the NI Act

The Delhi High Court, recently, directed the Principal District & Sessions Judge (Head Quarters) to submit reports from all district courts regarding compliance with the protocol outlined in the Negotiable Instruments Act, 1881 (NI Act). 

The bench of Justice Swarana Kanta Sharma held, “Learned Principal District & Sessions Judge (HQs) will file a report received from the learned District & Sessions Judges of all the District Courts, and will send the same through the learned Registrar General of this Court, a day prior to the next date of hearing”. 

These directives were issued in response to a petition highlighting concerns regarding the lack of control over the listing of filed matters once registered. The petitioner, represented by Advocate Bharat Arora, explained that despite filing a matter under the Negotiable Instruments Act, they were given a hearing date nine months later.

Advocate Bharat Arora argued that scheduling the complaint's admission and consideration nine months later undermines the purpose of digital court filing and violates legal requirements. The counsel requested the cancellation of the current hearing date before the trial court and urged for an earlier hearing date in the interest of justice. Additionally, they sought instructions for the concerned district court to monitor the dates of electronically filed fresh matters, particularly those under Section 138 of the NI Act, citing a lack of a system for listing such matters through the computerized system.

Upon reviewing the case file and considering the arguments, the court found it necessary to obtain a report from the trial court to understand why a nine-month period was allocated for the consideration of the matter under Section 138 of the Negotiable Instruments Act, 1881.

Furthermore, the court directed the Principal District & Sessions Judge (Headquarters) to submit a report on the procedural practices observed in cases filed under the Negotiable Instruments Act, 1881, across all district courts in Delhi. The Principal District & Sessions Judge (HQs) will compile these reports from the District & Sessions Judges of all district courts and submit them through the Registrar General of this court, one day before the next hearing.

Accordingly, the court listed the matter for May 21, 2024.

Case Title: Royale Resinex Pvt Ltd v State Govt Of NCT Of Delhi & Anr.