Lok Sabha on 13 May
2015 passed The Negotiable Instruments
(Amendment) Bill, 2015 by a voice vote. The Bills amends the Negotiable Instruments Act, 1881 in
order to make cheque-bounce filing
of cases more convenient for check payees (person who receives the cheque).
Key facts
The bill adds provision to specify
the territorial jurisdiction of the courts in cases related to bouncing of
cheques which was not present in the parent Act.
It says that cases in this regard
need to be filed only in a court in whose jurisdiction the bank branch of the
payee lies.
It also adds provision related to
more than one case is filed against the same person before different courts for
bouncing of cheques.
In this matter, the case will be
transferred to the court that has appropriate jurisdiction.
The bill also amends the definition
of cheque. Now it defines it as cheque in the electronic form which is signed
in a secure system with a digital signature or using electronic system and
drawn in electronic medium using any computer resource. About Negotiable Instruments Act, 1881
The Act defines bills of exchange,
promissory notes, cheques and creates penalties for issues such as bouncing of
cheques.
It also specifies circumstances under which
complaints for cheque bouncing can be filed.
No comments:
Post a Comment
Note: only a member of this blog may post a comment.