Negotiable Instruments (Amendment) Bill, 2017 explained
New Delhi, July 27: The Negotiable Instruments (Amendment) Bill, 2017 has been passed by the Rajya Sabha. The Bill was first introduced in the Lok Sabha on January 2 2018 and it sought to amend the Negotiable Instruments Act of 1881.
Here the top features of the Bill:
Interim
compensation:
The
Bill
inserts
a
provision
allowing
a
court
trying
an
offence
related
to
cheque
bouncing,
to
direct
the
drawer
(person
who
writes
the
cheque)
to
pay
interim
compensation
to
the
complainant.
This
interim
compensation
may
be
paid
under
certain
circumstances,
including
where
the
drawer
pleads
not
guilty
of
the
accusation.
The
interim
compensation
will
not
exceed
20%
of
the
cheque
amount,
and
will
have
to
be
paid
by
the
drawer
within
60
days
of
the
trial
court's
order
to
pay
such
a
compensation.
Deposit
in
case
of
appeal:
The
Bill
inserts
a
provision
specifying
that
if
a
drawer
convicted
in
a
cheque
bouncing
case
files
an
appeal,
the
appellate
court
may
direct
him
to
deposit
a
minimum
of
20%
of
the
fine
or
compensation
awarded
by
the
trial
court
during
conviction.
This
amount
will
be
in
addition
to
any
interim
compensation
paid
by
the
drawer
during
the
earlier
trial
proceedings.
Returning
interim
compensation:
In
case
the
drawer
is
acquitted
(during
trial
or
by
the
appellate
court),
the
court
will
direct
the
complainant
to
return
the
interim
compensation
(or
deposit
in
case
of
an
appeal
case),
along
with
an
interest.
This
amount
will
be
repaid
within
60
days
of
the
court's
order.