RS passes Negotiable Instruments (Amendment) Bill, paves way for legislation on cheque bouncing

New Delhi, July 26: The Rajya Sabha today passed the Negotiable Instruments (Amendment) Bill, 2017 which is aimed at reducing delays in resolution of cheque bouncing cases.

The bill has the provision of allowing a court trying an offence related to cheque bouncing, to direct the drawer to pay interim compensation to the complainant.

As per this provision, interim compensation not exceeding twenty percentage of the cheque amount can be ordered to be paid in cases where the accused does not plead guilty in a summary trial or summons case.

The interim compensation will, however, not exceed 20% of the amount of the cheque that was dishonoured.

The interim compensation is to be paid by the drawer of the dishonoured cheque in a summary trial or a summons case. It is applicable even if he pleads not guilty to the charge made in the complaint.

There are 16 lakh cheque bouncing cases that are lying in the subordinate courts and 35 thousand cases are in the higher judiciary.