Over 1,100 absconders in cheque bounce cases in Sirsa

The district is witnessing a rise in cheque bounce cases, with over 1,100 persons declared absconders under Section 138 of the Negotiable Instruments Act, as of June 30. Some accused have been named in over 70 such cases individually, raising concerns about the law’s waning deterrent effect.

As per the latest Proclaimed Offender (PO) Report from the Sirsa District Court, Judicial Magistrate First Class Richu's court has declared the highest number of absconders —747 cases, mostly all under Section 138. In the court of Additional Chief Judicial Magistrate Munish Nagar, 14 of 34 PO cases were cheque-related. In Dabwali, Sub-Divisional Judicial Magistrate Harleen Pal Singh reported 25 of 87 such cases and Judicial Magistrate Suman Patlain 68 of 124.

In Ellenabad, 153 of 230 absconder cases in Sub-Divisional Judicial Magistrate Ashish Arya’s court pertained to bounced cheques. In Judicial Magistrate Prateet Singh’s court, 78 of 149 PO cases were under Section 138, as were all 38 cases in Rania under his jurisdiction.

One individual, Anita Daing, has been declared absconder in more than 70 cheque bounce cases alone. The growing number of POs since 2016, with many still untraceable, is a cause of concern.

Bakshish Singh Thind, an advocate at Sirsa Court, said the law no longer instilled fear. “Courts are overloaded with such cases. The accused delay hearings deliberately, and even when caught, they are treated like first-time respondents,” he said, advocating for tighter legal procedures and harsher consequences for absconders.

A retired Junior Engineer from Sirsa said around 13 years ago, he sold his home to lend money to a friend, secured by post-dated cheques. When the cheques bounced, he pursued the matter legally and won. Yet, the accused remains absconding, and no money has been recovered. He said the police were exerting pressure on him to reveal the whereabouts of the accused.

Dr Rakesh Saini, a law faculty member at CDLU, said lakhs of cheque bounce cases, ranging from Rs 5,000 to crores, were pending across the country, with each taking equal court time. He suggested using Artificial Intelligence (AI) and adopting Japan-like tech-based systems to resolve smaller cases quickly. He also recommended creating an out-of-court settlement mechanism for faster resolution. “Even when caught, there’s no space to hold these offenders. The law needs urgent reforms to prevent habitual defaulters from escaping punishment,” he said.

Section 138 losing impact

Section 138 was added to the Negotiable Instruments Act in 1988 to uphold financial discipline by penalising those who issue cheques without sufficient funds. The law allows for up to two years of imprisonment or a fine of up to twice the cheque amount. Initially, it was effective in curbing financial fraud, but legal experts now say the law is losing its impact.