All Cheque Bounce Cases Must be Referred to Mediation After Service of Accused: Punjab & Haryana High Court

The Punjab and Haryana High Court directed that all cases under Section 138 of the Negotiable Instruments Act, 1881, relating to cheque dishonour should be referred to mediation once the accused has been served.

The Court observed that such disputes are essentially compensatory in nature and are better resolved through negotiated settlement rather than prolonged criminal trials.

It emphasised that mediation can help parties reach quicker financial resolution and reduce the burden on courts.

The High Court also noted that cheque dishonour cases arise from private financial disputes and should not unnecessarily involve the State, stressing that courts should not become recovery forums for such matters.

[Sonu Kumar v. Kulbir Singh]