Indore-based social activist and legal awareness campaigner Dr. James Pal has raised serious concerns over the flawed implementation of Section 138 of the Negotiable Instruments Act (NIA), 1881, citing personal experience and the plight of thousands of victims nationwide.
Dr. Pal, who filed a cheque dishonor case in the District Court of Indore in 2018, has revealed that even after 7 years, the case has not progressed to the stage of recording his statement or accepting key original documents like the dishonored cheque and legal notice. In a public statement, he emphasized that “justice delayed is justice denied,” and accused the current legal process of being more favorable to defaulters than to victims.
“On 25 June 2025, I appeared in court to submit the original documents and record my statement. The accused and his lawyer deliberately disappeared after signing the notesheet. Despite my repeated appeals, the Judicial Magistrate did not proceed with my statement or take the documents on record. I’ve now been given another date—31 July—only to repeat the same process,” said Dr. Pal.
He further stated that the legal system forces victims to stand helpless outside courtrooms, waiting endlessly, while culprits exploit legal loopholes to delay proceedings without consequence. “In my case and many others, victims are made to feel like the accused while proven defaulters roam freely,” he added.
Key Demands for Legal Reform:
- Mandatory Early Deposit of Cheque Amount by Accused: In genuine cases, the accused must deposit the claimed amount in court within the first year—similar to how currency dishonor is handled by banks.
- Victim-Centric Procedure: The victim’s statement and document submission should not depend on the presence of the accused, especially if the accused is avoiding proceedings deliberately.
- Penalties for Delay Tactics: Filing irrelevant annexures, demanding unrelated evidence, and unjustified absenteeism should attract financial and legal penalties.
- Limit Frivolous Appeals: Once prima facie evidence is established, higher court appeals should be filtered to prevent misuse.
Appeal to Government and Judiciary:
Dr. Pal has addressed formal letters to:
- Hon’ble President of India, Smt. Droupadi Murmu
- Hon’ble Minister for Law & Justice, Shri Arjun Ram Meghwal
- Principal Registrar, High Court of Madhya Pradesh, Indore
These letters urge them to initiate urgent structural and procedural reforms in cheque dishonor cases under Section 138, to protect the rights and dignity of complainants and restore public confidence in the legal system.
