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President re-promulgates ordinance on cheque bounce cases

By PTI
23 September, 2015

In a big relief to about 18 lakh people who have to travel long distances to deal with cheque bounce cases, President has re-promulgated an ordinance that will make prosecution easier by allowing filing of cases where cheques are presented for receiving payments.

This is for the second time in over three months that President Pranab Mukherjee has promulgated the Negotiable Instruments (Amendment) Second Ordinance, 2015, a notification issued by the government on Tuesday said.

As Parliament is not in session and the President is satisfied that circumstances exist which render it necessary for him to take immediate action, the ordinance was re-promulgated, it said.

There are an estimated 18 lakh people battling cheque bounce cases across the country. Some of them have to travel to different places from where the cheques were issued and not honoured.

The Union Cabinet had on September 16 approved the re-promulgation of the ordinance. Earlier, the President had on June 15 promulgated the ordinance.

The ordinance was necessitated as an amendment bill– Negotiable Instruments (Amendment) Bill, 2015– to help the litigants in the cheque bounce case was passed by Lok Sabha in May this year but it could not go through Rajya Sabha in the Monsoon session.

The amendment passed by the Lok Sabha provides that cases of bouncing of cheques can be filed only in a court in whose jurisdiction the bank branch of the payee (person who receives the cheque) lies.

If a complaint against a person issuing a cheque has been filed in the court with the appropriate jurisdiction, then all subsequent complaints against that person will be filed in the same court, irrespective of the relevant jurisdiction area.

“The clarity on jurisdictional issues for trying cases of cheque bouncing would increase the credibility of the cheque as a financial instrument.

“This would help trade and commerce in general and allow the lending institution, including banks, to continue to extend financing to the economy, without the apprehension of loan default on account of bouncing of a cheque,” a statement issued by the government had said.


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President re-promulgates ordinance on cheque bounce cases

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