Modi Govt to bring in Ordinance to amend Negotiable Instruments Act

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New Delhi, Jun 10: In order to provide benefit to 18 lakh persons battling cheque bounce related cases, the Cabinet today decided to bring in an ordinance to amend the Negotiable Instruments Act, the 14th Ordinance since Narendra Modi-led government took charge in May last year.

The proposed Ordinance will enable filing of cheque bounce cases in place where the cheque was presented for clearance or payment.

Modi Govt to bring its 14th Ordinance

"As you are aware of the Negotiable Instrument Amendment Ordinance, the Supreme Court had passed a judgement that if you receive a cheque from someone and the cheque gets bounced, then the jurisdiction for initiating action lies in the state where it was issued," Road Transport and Highways Minister Nitin Gadkari said after the Cabinet meeting.

"18 lakh such cases in various courts...Government had brought a Bill in this regard in Parliament. Rajya Sabha could not pass it, so to give relief to these people government has brought this ordinance," he said.

"So the Ordinance will benefit 18 lakh people," he added. It is to be noted that Land Ordinance, which has been issued for the third time last month, is the 13th executive order of the NDA government since it came to power.

Gadkari further said, if there were three cases of bounced cheque against one person, then all these cases could be brought in one place and clubbed.

Negotiable Instruments (Amendment) Act, 2015 was passed in the Lok Sabha in May this year seeking to overturn a Supreme Court 2014 ruling said the case has to be initiated where the cheque-issuing branch was located.


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