Lok Sabha clears Bill to deal with cheque bounce cases; Move will help small traders, says Jayant Sinha
Updated: Aug 07, 2015 12:13:55pm
New Delhi, Aug 7 (KNN) In order to to ensure a fair trial in cheque bounce cases, the Lok Sabha on Thursday passed the bill that allows filing a case of cheque bounce at the place it is presented for clearance and not the place of issue.
The amendments in the Negotiable Instruments Act will have implications for over 18 lakh cheque bounce cases pending in various courts, Minister of State for Finance Jayant Sinha said while piloting the Negotiable Instruments (Amendment) Bill 2015 in the House.
"It is a small bill but has profound implications for the economy...it will further enable enforcement of contract," Sinha said, adding that the measure will help small traders, large corporates especially telecom companies which are facing a large backlog of cheque bounce cases.
The bill seeks to replace an ordinance that was re-promulgated earlier. Though the bill was passed by the Lok Sabha in the budget session, it could not be approved by the Rajya Sabha, leading to the re-promulgation.
The NDA government had to issue an Ordinance to fast-track resolution of cheque-bounce cases.
According to the Ordinance, all cheque-bounce cases can be filed only in a court within whose local jurisdiction the bank branch of the payee is situated, and where the payee presents the cheque for payment.
This was the 14th Ordinance issued by the Narendra Modi government since it assumed office late last May. (KNN Bureau)
The amendments in the Negotiable Instruments Act will have implications for over 18 lakh cheque bounce cases pending in various courts, Minister of State for Finance Jayant Sinha said while piloting the Negotiable Instruments (Amendment) Bill 2015 in the House.
"It is a small bill but has profound implications for the economy...it will further enable enforcement of contract," Sinha said, adding that the measure will help small traders, large corporates especially telecom companies which are facing a large backlog of cheque bounce cases.
The bill seeks to replace an ordinance that was re-promulgated earlier. Though the bill was passed by the Lok Sabha in the budget session, it could not be approved by the Rajya Sabha, leading to the re-promulgation.
The NDA government had to issue an Ordinance to fast-track resolution of cheque-bounce cases.
According to the Ordinance, all cheque-bounce cases can be filed only in a court within whose local jurisdiction the bank branch of the payee is situated, and where the payee presents the cheque for payment.
This was the 14th Ordinance issued by the Narendra Modi government since it assumed office late last May. (KNN Bureau)
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