Court Emphasizes Mediation as a Preferred Alternative to Lengthy Trials in Negotiable Instruments Act Cases
In a significant judgment delivered on March 10, 2026, the Punjab and Haryana High Court underscored the importance of mediation as an effective alternative to adversarial trials in cases of cheque bounce under the Negotiable Instruments Act, 1881. The court, presided over by Justice Anoop Chitkara, highlighted the quasi-criminal nature of such cases, where the predominant aim is recovery and compensation rather than punishment.
The case in question involved a dispute between Sonu Kumar and Kulbir Singh, where the petitioner sought to challenge an order denying the examination of a handwriting and fingerprint expert. The order, dated October 3, 2025, was issued by the Judicial Magistrate Ist Class, Ludhiana, in a case concerning a cheque bounce amounting to Rs. 19,49,230/-. The trial court had previously dismissed the application for expert examination, noting it as a delay tactic given the trial's advanced stage.
Justice Chitkara, while dismissing the petition on its merits, advocated for mediation, citing the Mediation Act, 2023, as a viable framework for resolving such disputes efficiently. The court noted that mediation aligns outcomes with commercial realities, reduces judicial burdens, and preserves business relationships. The judgment emphasized that mediation provides a platform for dialogue and negotiation, shifting the focus from blame to resolution.
The court also referenced legislative provisions under the Bharatiya Nyaya Sanhita, 2023, which allow for the compounding of offences akin to Section 147 of the NI Act, reinforcing the legislative intent to prioritize restitution over punishment. The judgment directed trial courts to refer cheque bounce cases to mediation promptly upon the service of the accused, urging parties to settle disputes amicably.
Furthermore, the court recognized the procedural efficacy of Section 143 of the NI Act, which mandates summary trials for expeditious resolution of cheque bounce cases. This approach, the court observed, would help alleviate the bottleneck of pending cases, facilitating a swifter justice process.
In conclusion, the Punjab and Haryana High Court's decision underscores a shift towards mediation as a pragmatic approach to resolving cheque bounce cases, fostering a judicial environment that prioritizes speedy recovery and commercial harmony over prolonged litigation.
Bottom Line:
Negotiable Instruments Act - Section 138 cases are quasi-criminal in nature with a predominant objective of recovery and compensation rather than punishment. Mediation, as per the Mediation Act, 2023, provides an effective alternative to adversarial trials to address cheque bounce cases efficiently.
Statutory provision(s): Negotiable Instruments Act, 1881 Sections 138, 143, 147, Bharatiya Nyaya Sanhita, 2023 Section 359, Mediation Act, 2023 Section 7.
Sonu Kumar v. Kulbir Singh, (Punjab And Haryana) : Law Finder Doc id # 2864571
