Amendments to Negotiable Instruments Act - July 2018

The Lok Sabha has passed Negotiable Instruments(Amendment) Act on July 23, 2018,

“with a view to address the issue of undue delay in final resolution of cheque dishonour cases so as to provide relief to payees of dishonoured cheques and to discourage frivolous and unnecessary litigation which would save time and money”. 

As per the Amended Section 143A, interim compensation not exceeding 20% 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 has to paid within 60 days from order. It can be recovered in the manner of recovery of fine as per Section 421 CrPC. 

Further in the event of an acquittal, the interim compensation will have to be returned by the Complainant, alongwith interest prescribed by the RBI.

The amendment also introduces Section 148 in the Act, empowering the appellate court to direct deposit of a minimum of 20% of the cheque amount in appeal by the drawer against conviction, within a period of sixty days. 

This amount can be released to the complainant and has to be returned to the accused if the appeal is allowed.

Source: LiveLaw