Parliament passed a bill aiming at allowing a court to try offences related to cheque bounce expeditiously and direct the drawee to pay a minimum of 20 per cent of the cheque amount as interim compensation.
The Negotiable Instruments (Amendment) Bill, 2018, which was passed in the Lok Sabha on July 23, was passed by the Rajya Sabha by a voice vote.
Moving the bill for consideration and passage, Minister of State for Finance Shiv Pratap Shukla said presently over 16 lakh cases of cheque bounce are pending in subordinate courts.
Moreover, 34,000 such cases have gone to the high courts following appeal.
"We have brought the amendments to ensure that people have trust and faith on issuing cheques," the Minister said, adding that 1881 law on negotiable instruments has been amended from time to time.
The latest amendments aims to insert Section 143A and Section 148 in the Act to provide that a court trying a cheque bounce offence under Section 138 may order the drawer of the cheque to pay interim compensation to the complainant.
The drawer, who pleads not guilty of the accusation, will have to pay at least 20 per cent of the cheque amount as interim compensation within 60 days of the trial court's order. An additional 20 per cent compensation will have to be paid if the drawer goes for an appeal.
If the drawer is acquitted, the court may direct the payee to repay the amount paid as interim compensation with interest.