Lok Sabha passes Negotiable Instruments (Amendment) Bill, 2017 on cheque bounce cases
On July 23, the Lok Sabha passed the Negotiable Instruments (Amendment) Bill, 2017 that allows a court hearing a cheque bounce case to direct the drawer — the person who wrote the cheque — to pay interim compensation to the person who filed the complaint. The interim compensation, to be paid within 60 days of the court’s order, can be up to 20% of the value of the cheque. The court may direct the payee to repay the interim compensation, with interest, if the drawer is acquitted. Now , the bill will go to the Rajya Sabha for its nod. If bill gets Parliament’s nod, it will preserve the sanctity of cheque transactions by stopping the practice of people trying to deliberately delay cases through filing of appeals and obtaining stay a on proceedings. The bill, which amends the Negotiable Instruments Act 1881, is aimed to reduce the number of cheque dishonour cases pending in courts.