The Supreme Court on Thursday came down heavily on financial institutions and banks for what it described as the routine “misuse of law” to harass small borrowers by filing cheque-bounce complaints in far-off cities, despite all underlying transactions having occurred elsewhere. The Court said it would examine the issue in detail and “settle the law” to prevent such practices.

A bench of Justices Surya Kant and Joymalya Bagchi made the remarks while hearing a transfer petition filed by Golla Naraesh Kumar Yadav , who challenged a cheque-bounce case lodged by Kotak Mahindra Bank before the Chief Judicial Magistrate in Chandigarh. Yadav sought that the case be shifted to Adoni in Kurnool district, Andhra Pradesh , where the entire loan transaction had taken place.

Appearing for Yadav

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