In this business-oriented age, cheques including post-dated cheques are in a frequent use to make and receive payments from vendors, suppliers, and customers. In most of the cases, the matter ends up in the court with respect to offences of dishonor of cheque which lingers on for years. This reduces the credibility of
chequesin the world of business.
On Monday, July 23rd, 2018 Lok Sabha passed the Negotiable Instruments (Amendment) Bill, 2017 providing for a speedy disposal of cases relating to the offence of dishonor of cheques. The amendment was introduced “with a view to address the issue of undue delay in final resolution of cheque dishonor cases so as to provide relief to payees of dishonoured cheques and to discourage frivolous and unnecessary litigation which would save time and money. 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,” said the statement of objects and reason of the Bill.
Here is all you need to know about the proposed changes in the
Negotiable Instruments Acton cheque bouncing:
- The Bill inserts a new section 143A in the said Act to provide the Court trying an offence under section 138to order the drawer of the cheque to pay interim compensation to the complainant, in a summary trial or a summons case, where he pleads not guilty to the accusation made in the complaint; and in any other case, upon framing of charge.
The interim compensation so payable shall be such sum not exceeding twenty percent of the amount of the
cheque; and
- The Bill also inserts another section 148 in the said Act so as to provide that in an appeal by the drawer against conviction under section 138, the Appellate Court may order the appellant to deposit such sum which shall be a minimum of twenty percent of the fine or compensation awarded by the trial court
Cheque Not Valid If Amount Written Is Uncertain under Sec 138 NI Act: Delhi HC
Judiciary
Aug 05, 2020
VANDANA KOTHARI
(
Editor: Ekta Joshi
)
20 Shares
A revision petition was filed for setting aside the order passed by Ld. MM in the case of ‘M/s Laxmi Dyechan v. State of Gujarat, 2012’ where the application of the accused/revisionist was dismissed under sec 138 of Negotiable Instruments Act, 1881. The respondent of the above order filled a complaint under sec 138 of NI act against the revisionist for failing to make the payment of the amount of the cheque. In the said cheque drawn for an amount of ‘Forty-Four Lacs Eighteen...
SC has sought AG’s Response on Viability of Serving Demand Notice Under S. 138 of NI Act Via WhatsApp/Email
Judiciary
Jun 09, 2020
Parth Thummar
(
Editor: Ekta Joshi
)
40 Shares
The Supreme Court has on June 08, 2020, sought the response of the Attorney General KK Venugopal in an application seeking service of demand notice in "dishonor of cheque" cases through Email and WhatsApp under section 138 of the Negotiable Instruments Act, 1881. The Supreme Court wanted to know the viability of alternative means of service and ways to ensure that the said service through these alternative modes is not misused. The issue had come up through the interlocutory...
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