Cheques are instruments issued in the process of Business transactions between two people or between the Companies for the financial transactions in respect of the buying and selling of the products and services. There are several cheques that have been used and issued in the business transactions sometimes also a way to defraud the other party to the transaction. Due to this business also run in loss. There are several cheque bounce cases going on in the court for several days and sometimes it takes years together as the party who has issued the cheque will either be dragging the case on one or the other ground or will try to avoid the further proceedings of the case to secure himself from the situation and to avoid the payment which was issued got default. Thus there are several cheque bounce cases pending before the courts of Magistrate, Highcourt and even supreme courts. Thus the Supreme court taking into consideration of all these issues has taken up the Suo Moto Writ petition to fasten the proceedings of the cheque Bounce cases and which is pending for hearing before the Supreme Court.
In view of the Cheque being used regularly in the Business transactions and later Business running in loss have huge impact on the business community and even the economy of the country. Thus Supreme court has requested RBI to come up with a new formats of Cheque to mention the purpose of the cheque used in the financial transactions.
Hope the best things come out of this and that helps the Public in large and also run the Business financial transactions successful.