THE NEGOTIABLE INSTRUMENT BILL

The Negotiable instrument (Amendment) Bill, provides for trial of the offenses related to cheque bounce expeditiously and direct the drawee to pay a minimum of 20 percent of the cheque amount as the interim compensation.

The parliament passed a bill for a quick prosecution in cheque bounce cases which was passed by a voice vote in which provide compensation to the complainant. This interim compensation should not be exceeding 20 percent, which is paid by certain circumstances, including where the drawer found not guilty of the accusation within 60 days of the trial court’s order to pay the compensation.

Earlier moving the bill for consideration and passage, Minister of State for Finance Shiv Pratap Shukla said presently 16 lakh cases of the cheque bounce are pending in the subordinate courts and more than 34000 cases have gone to the high courts.

Shukla said will bring down the litigation process and provide credibility to cheques and the banking system. He also said that they reduce inordinate delays in cheque bounce cases. In the dishonor cases, the bill seeks to do away with “unnecessary” litigation.

Shulka also said that ‘the banks would be helped by these amendment’s and urging the member to support the measure. In the amendment bill, if the drawer is an acquittal, the courts may direct the payee to repay the amount paid as in the form of interim compensation with interest. He said, “the bill is for the money launderers”. Participating in the debate on the bill, Congress leader Madhusudan Mistry said the penalty proposed was not that deterrent to curb fraudulent practices and also participating in the discussion, Congress leader Shashi Tharoor said that there we need to have a provision for “trial in absentia”. “It is a good bill but not sufficient and more should be added”, and he also said the government to include fast-track courts exclusively for the cheque bounce cases.

The latest amendment to aims to section 143A and section 148 in the act provides that now the court is trying to resolve the cheque bounce cases under section 138 of the Negotiable act, 1881 and may order to the drawer of the cheque to pay the interim compensation and also 20 percent of an additional compensation have to paid if drawer has gone for an appeal.

In the discussion, Manish Gupta (TMC) said that the amendments will not have any great impact but a step towards improvement. He also said that the need for a role of the regulator RBI in curbing cheque bounce cases.

Kalyan Banerjee (TMC) was of the view that terming the bill as a good endeavor or objective behind the legislation was that the victim should get justice as soon as possible. “The endeavor is good but more endeavor has to be taken for better justice. 

Ganesh Singh (BJP) Leader said the legislation will help the public it was a welcome effort or initiative of the government. MP Ravindra Babu said the earlier Government had given them a cheque (assurance to give special status ho his state) but it has bounced.

Author:

eStartIndia Team