Cheque-bounce case: New Bill in Lok Sabha to provide for interim compensation | Business Line–03.01.2018

The interim compensation can be an amount not exceeding 20 per cent of the amount of the cheque, according to the Statement of Objects and Reasons of the Bill.

Legal reforms are finally underway around cheque bounce cases to address the issue of undue delay in final resolution of such cases in trial courts.

Through a new Bill, the Centre not only seeks to provide relief to payees of dishonoured cheques, but also discourage frivolous and unnecessary litigation so as to save time and money.

This Bill — Negotiable Instruments (amendment) Bill 2017 — was introduced in the Lok Sabha by Finance Minister Arun Jaitley on Tuesday.

Interim compensation

The Bill seeks to empower the Court to direct the drawer of the cheque to pay interim compensation to the complainant.

The interim compensation can be an amount not exceeding 20 per cent of the amount of the cheque, according to the Statement of Objects and Reasons of the Bill. Also, in the case of appeal by drawer against conviction, the Appellate Court may direct the appellant to deposit such sum which should be a minimum of the 20 per cent of the compensation awarded by the trial court, the Bill said.

Cheques’ credibility

The proposed amendments will strengthen the credibility of cheques and help trade and commerce in general by allowing lending institutions, including banks, to continue to extend financing to the productive sectors of the economy, according to the Statement of Objects and Reasons of the Bill.

(This article was published on January 2, 2018)

via Cheque-bounce case: New Bill in Lok Sabha to provide for interim compensation | Business Line

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s