Ordinance to curb cheque bounce cases
New Delhi: To make it easier for businesses to deal with cheque bounce cases, the Cabinet on Wednesday decided to bring in an ordinance to amend the Negotiable Instruments Act. This is the 14th Ordinance since Narendra Modi-led government took charge in May last year. It will reverse a Supreme Court judgement, which had said that if a cheque gets bounce, the case will have to be filed in a local court where drawers’ bank is located.
The SC judgement meant that if a Delhi-based businessman gave a cheque to a businessman from Jaipur and in case it bounced, the case will have to be filed only in Delhi. Industry alleged that it increased the harassment of the person who suffered a fraud, as he had to repeatedly travel outside his state to pursue the case.
The ordinance, provides for filing of cases only by a court within whose local jurisdiction, the bank branch of the payee, where the payee delivers the cheque for payment is situated. It will mean that after the ordinance, the businessman in Jaipur, in case of a cheque bounce, will not have to travel to Delhi but can pursue the case in Rajasthan itself. The Negotiable Instruments (Amendment) Bill, 2015 was introduced in Lok Sabha on 6th May, 2015 and considered and was passed on 13th May, 2015.