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Interim grant for payees of bounced cheques soon

NEW DELHI: The government is set to provide relief to those facing the problem of Bounced Cheques with the Cabinet approving an “interim compensation” pending litigation.

The move is likely to provide a major relief to small and medium traders, many of whom have to engage in longdrawn litigations to recover payments arising from bounced cheques.

The move will be effected through a proposed amendment to the Negotiable Instruments Act. Sources said the amendments to the law propose that an alleged offender would not be allowed to appear before any Court unless he deposits a certain amount of the disputed amount.

The amendment would enable the court to order an interim compensation of a part of the cheque to the payee at the trial stage.

If the drawer is acquitted, the court may direct the payee to repay the amount paid as interim compensation with interest. Similarly, appellate courts would be enabled to order the appellant to deposit a part of the compensation awarded by the trial court at the time of filing appeal.
Announcing the Cabinet decision without divulging details, IT minister Ravi Shankar Prasad said the government is going to amend the law to deal with cheque-bounce cases. Prasad also said the government would work for setting up of a mechanism to fast track trials related to such matters.
The proposed stronger provisions would help public authorities to nail culprits in the shortest possible time. “For repeat offenders, there will be a stronger provision in the new law,” he said.
The government is also going to draw a plan to give incentive to the people who have been cheated in such a way. Cheque bounce cases occur when there is no money in the account of cheque issuer.
Source : timesofindia

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Interim grant for payees of bounced cheques soon


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