In a strong message to courts across the country, the Supreme Court has reinstated the conviction of a Goa resident for a dishonoured cheque of ₹6 lakh and simultaneously unveiled sweeping directions to tackle India’s mounting backlog of cheque-bounce cases. The Bench of Justices Manmohan and N.V. Anjaria set aside a 2009 Bombay High Court order that had acquitted accused Kishore S. Borcar, calling the earlier acquittal “perverse” and unsustainable.
Background
The case stemmed from a friendly loan of ₹6 lakh that Sanjabij Tari said he advanced to Borcar. When the repayment cheque bounced, Tari moved the courts under Section 138 of the Negotiable Instruments Act, which makes cheque dishonour a criminal offence. Both the Trial Court (2007) and the Sessions Court (2008) convicted Borcar. However, the Bombay High Court later overturned those findings in 2009, acting ex parte because Tari’s lawyer was absent. Tari then appealed to the Supreme Court.
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Court’s Observations
The apex court stressed that once a cheque’s signature is admitted, the law presumes it was issued for a legitimate debt unless the accused proves otherwise. “When the evidence of the complainant is read in its entirety, it cannot be said that the complainant had no wherewithal to advance the loan,” the Bench observed.
The judges dismissed Borcar’s claim that the cheque was a blank instrument handed over to help his friend secure a bank loan, calling it “unbelievable and absurd.” They also noted his failure to reply to the statutory notice, which “leads to an inference that there is merit in the complainant’s version.”
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On a broader level, the Court criticised lower courts for treating cheque cases like ordinary civil suits, warning that such attitudes undermine faith in the banking system. Pointing to alarming statistics-Delhi alone has over 6.5 lakh pending cheque-bounce cases-the Bench called for urgent procedural reforms.
Decision
Allowing the appeal, the Supreme Court restored the Trial and Sessions Court convictions. Borcar must pay ₹7.5 lakh in 15 monthly instalments of ₹50,000 each.
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The Court also rolled out nationwide guidelines effective 1 November 2025:
- Faster Summons: Complainants can serve summons directly and electronically, including via email or messaging apps.
- Early Settlement: District courts must enable secure online payment links in summons to encourage quick resolution.
- Mandatory Case Synopsis: Every complaint must carry a one-page summary with cheque details, dates and cause of action.
- Dashboards & Monitoring: Delhi, Mumbai and Kolkata district judges must maintain real-time dashboards on pendency and disposal rates.
“The object of punishment is not retribution but to ensure payment of money and promote the credibility of cheques,” the judges concluded.
Case Title: Sanjabij Tari v. Kishore S. Borcar & Anr. – Supreme Court of India
Appeal No.: Criminal Appeal No. 1755 of 2010
Citation: 2025 INSC 1158
Date of Judgement: 25 September 2025
