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Seek compromise in cheque bounce cases before they reach court, SC judge tells banks

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Ayesha Arvind,Ayesha Arvind

Posted: Feb 09, 2009 at 0037 hrs IST

New Delhi With the mounting backlog of cheque bounce cases, Justice Arijit Pasayat of the Supreme Court on Sunday urged the banks to make use of “pre-litigation conciliation” to check the problem.

Speaking at the inauguration of the Capital’s first cyber Lok Adalat, organised by the Delhi Legal Services Authority in association with the ICICI Bank to settle cheque bounce cases, Justice Pasayat suggested that the banks extend conciliation to check the backlog and reduce the “inflow of fresh litigation”.

“There should be an extension of conciliatory methods for settlement of cases before they reach the stage of litigation. For the method is not only more productive in view of settling cases, but also brings about restoration of cordial relationship between the litigating parties, for nobody loses in the end, and the ultimate objective of settlement is also achieved,” he said.

He praised the Delhi mediation centre and the concept of Lok Adalats. Calling it an “effective mechanism of Alternative Dispute Redressal”, he said the work done was worth “applause for bringing the war between the litigants to a truce.”

Justice Mudgal urged the private sector banks to be more “consumer friendly.” Sharing his personal experience of facing difficulty in paying his ICICI credit card bill, he asked the bank to be more attentive towards the grievances of its customers. The first of its kind Mega Lok Adalat was organised in the five district courts to dispose of 1.1 lakh cases of cheques bounce. Out of these, over 12,000 cases were settled.

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