Cheque bounce cases: Major changes in the law

New Delhi: To handle cheque bounce cases, Central Govt. had introduced a bill to make major changes in the law. On 23rd July 2018, Lok Sabha has passed the Negotiable Instruments (Amendment) Bill.

According to the report published in Financial Express, the amendments to the bill will allow courts to ask drawer to pay interim compensation to the complainant. The compensation amount should be paid within 60 days of the order.

Minister of State for Finance, Mr. Shiv Pratap Shukla, while moving the bill for passage, said that it will increase cheques’ credibility. It may also reduce the delay in cheque bounce cases.

The court may also ask the payee to return the compensation amount along with interest in case, drawer gets acquitted.

CPI-M leader, Mr. A Sampath termed the bill as unconstitutional. However, Congress leader, Mr. Shashi Tharoor has welcomed the bill but he said that the bill needs more changes. He demanded fast-track courts to deal the cheque bounce case. TMC also welcomed the bill but said that it is inadequate.

Meanwhile, Mr. Ravindra Babu, TDP MP said that ex-PM had given a cheque (promise to give Special Status to AP) and it has bounced.