Lok Sabha passes Negotiable Instruments (Amendment) Bill, 2017 - (23 Jul 2018)
Banking
In order to reduce undue delay in final resolution of cheque dishonour cases and to provide relief to payees of dishonoured cheques, Parliament has passed the Negotiable Instruments (Amendment) Bill, 2018. The Bill allows a Court trying an offence related to cheque bounce to direct the drawer to pay interim compensation to the complainant. However, the compensation will not exceed 20 per cent of the cheque amount and will have to be paid by the drawer within 60 days of the trial Court's order or within such further period not exceeding thirty days as may be directed by the Court on sufficient cause being shown by the drawer of the cheque.
If the drawer of the cheque is acquitted, the Court shall direct the complainant to repay to the drawer the amount of interim compensation, with interest at the bank rate as published by the Reserve Bank of India, within sixty days from the date of the order. The interim compensation payable under new added Section 143A of Act, may be recovered as if it were a fine under Section 421 of the Code of Criminal Procedure, 1973.
The amendment is in background of fact that, Central Government has been receiving several representations from the public including trading community relating to pendency of cheque dishonour cases. Delay tactics followed by unscrupulous drawers of dishonoured cheques due to easy filing of appeals and obtaining stay on proceedings. Injustice is caused to the payee of a dishonoured cheque who has to spend considerable time and resources in Court proceedings to realise the value of the cheque. Such delays compromise the sanctity of cheque transactions. The amendment ensures credibility of cheques and drawer would be protected by new provision.
Tags : BILL AMENDMENT CHEQUE BOUNCE COMPENSATION
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