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TMI BlogTHE NEGOTIABLE INSTRUMENTS (AMENDMENT) BILL, 2017X X X X Extracts X X X X X X X X Extracts X X X X ..... THE NEGOTIABLE INSTRUMENTS (AMENDMENT) BILL, 2017 - By: - Mr. M. GOVINDARAJAN - Other Topics - Dated:- 24-1-2018 - - Introduction The Negotiable Instruments Act, 1881 was enacted to define and amend the law relating to promissory notes, bills of exchange and cheques. The said Act has been amended from time to time to provide speedy disposal of cases relating to the offence of dishonor of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cheques. The delay tactics adopted by the drawers of dishonored cheque due to easy filing of appeals and obtaining stay on proceedings, the Central Government felt injustice is caused to the payee of a dishonored cheque who has to spend considerable time and resources in the court proceedings to realize the value of the cheque. Therefore the Central Government proposed to amend the Negotiable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Instruments Act to address the issue of undue delay in final resolution of cheque dishonor cases so as to provide relief. The Government introduced the Negotiable Instruments (Amendment) Bill, 2017 in the Lok Sabha to provide the following- to insert a new section 143A and to insert a new section 148. Interim compensation Section 143A is proposed to be inserted to give powers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the court to direct interim compensation. The newly proposed section 143A provides that notwithstanding anything contained in the Code of Criminal Procedure, 1973, the court trying an offence under section 138 may order the drawer of the cheque to pay interim compensation to the complainant- in a summary trial or a summons case, where he pleads not guilty to the accusation made in the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mplaint; and in any other case, upon framing of charge. Amount of compensation The interim compensation shall not exceed 20% of the amount of the cheque. Due date of payment The interim compensation shall be paid within 60 days from the order issued by the Court for the payment of interim compensation or within such further period not exceeding 30 days as may be directed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Court on sufficient cause being shown by the drawer of the cheque. Refund in case of acquittal If the drawer of the cheque is acquitted, the Court shall direct the complainant to repay the drawer of the amount of interim compensation, with interest at the bank rate as published by the Reserve Bank of India, prevalent at the beginning of the relevant financial year, within 60 days from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e date of the order or within such further period not exceeding 30 days as may be directed by the Court on sufficient cause being shown by the complainant. Interim compensation as a fine The interim compensation payable may be recovered as if it were a find under section 421 of the Code of Criminal Procedure, 1973. Final compensation The amount of fine imposed under section 138 or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount of compensation awarded under section 357 of the Code of Criminal Procedure, 1973, shall be reduced by the amount paid or recovered as interim compensation under section 143A. Payment pending appeal The newly inserted section 148 provides the power to Appellate Court to order payment pending appeal against conviction. The said section provides that notwithstanding anything co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntained in the Code of Criminal Procedure, 1973, in an appeal by the drawer against conviction under section 138, the Appellate Court may order the appellant to deposit such sum which shall be a minimum of 20% of the fine or compensation awarded by the Trial Court. The amount so payable shall be in addition to the interim compensation paid by the appellant under section 143A. The amount as d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irected by the Court shall be deposited within 60 days from the date of the order, or within such further period not exceeding 30 days as may be directed by the Court on sufficient cause being shown by the appellant. Release of payment The Appellate Court may direct the release of the amount deposited by the appellant to the complainant at any time during the pendency of the appeal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Refund of payment on acquittal If the appellant is acquitted, the Court shall direct the complainant to repay to the appellant the amount so released, with interest at the bank rate as established by the Reserve Bank of India, prevalent at the beginning of the relevant financial year, within 60 days from the date of the order, or within such further period not exceeding 30 days as may be direc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by the Court on sufficient cause being shown by the complainant. Conclusion The proposed amendments will strengthen the credibility of cheques and it will help trade and commerce in general by allowing lending institutions, including banks, to continue to extend financial to the productive sectors of the economy. - - Scholarly articles for knowledge sharing authors experts professi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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