Dishonour of Cheques: Relief Recommended To the Aggrieved Party

Banking National News

Business Mantra News

  • The Government is all set to introduce Bill seeking amendment in the Negotiable Instrument Act pertaining to Dishonour of Cheque cases.
  • The Bill is proposed to incorporate the interim relief measures in case of dishonor of cheque.
  • The said Bill is likely to be tabled in the upcoming Parliamentary Session.
  • The amendment will empowers court to grant interim compensation in Cheque Dishonor.
  • The compensation will be awarded to those whose cheque have been bounced for want of funds by dishonoring parties.
  • The move has been taken to ensure less cash economy and avoid long trials of N.I. cases.
  • Law Minister Ravi Shankar Prasad has confirmed the cabinet approval of amendment in the Negotiable Instrument Act, 1881.
  • While sharing the details upon the proposed amendment, he told that the Bill would enable the court to award interim compensation amount to the payee during the trial.
  • The amount of interim compensation will be a part of the total amount of the dishonored cheque.
  • In case, the drawer is found innocent then court may order to the payee to pay back the amount along with interest to the court.

The purpose of this amendment is to push and help trade and commerce and to resolve the complexity of long trials under Negotiable Instrument Act.

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