The Lok Sabha on July 23, 2018 passed the Negotiable Instruments (Amendment) Bill, 2017 that seeks to amend the Negotiable Instruments Act, 1881. The Act has amended to deal firmly with cheque bounce cases.
The Bill was introduced in Lok Sabha on January 2, 2018.
Provisions of the Bill
• The Bill defines promissory notes, bills of exchange, and cheques.
• It also specifies penalties for bouncing of cheques and other violations with respect to such negotiable instruments.
• Interim compensation: The Bill inserts a provision allowing a court trying an offence related to cheque bouncing, to direct the drawer to pay interim compensation to the complainant. The interim compensation will not exceed 20 percent of the cheque amount.
• Deposit in case of appeal: The Bill inserts a provision specifying that if a drawer convicted in a cheque bouncing case files an appeal, the appellate court may direct him to deposit a minimum of 20 percent of the fine or compensation awarded by the trial court during conviction.
• Returning the interim compensation: In case the drawer is acquitted (during trial or by the appellate court), the court will direct the complainant to return the interim compensation (or deposit in case of an appeal case), along with an interest. This amount will be repaid within 60 days of the court’s order.
Parliament passes Insolvency and Bankruptcy Code (Second Amendment) Bill, 2018
Assam-NRC Draft can’t be basis of any action by any authority: SC
Government to soon introduce bill proposing death penalty for mob lynching
Ministry of Shipping issues new guidelines for improving treasury investment for Major Ports