NEW DELHI: Brace up to deal with stringent laws, including monetary penalties, in case your cheque bounces. Repeat offenders will have to face even rigorous provisions, according to government officials.
The Union Cabinet on Friday took the ‘historic decision’ to amend the archaic Negotiable Instruments Act, 1881, to ensure that the dishonour of cheques due to inadequate funds (wilful or otherwise) will be seriously dealt with henceforth, as it causes incalculable loss and inconvenience to payees, erodes credibility of cheques and causes serious distress in trade, business and MSME sectors.
According to Union IT Minister Ravi Shankar Prasad, the government will set up a mechanism to fast-track trials related to such matters, besides proposing stronger provisions to nail culprits at the earliest. “For repeat offenders, there will be a stronger provision in the new law,” he said.
The proposed amendment comes amid growing representations from the public and the trading community on the injustice caused to payees as a result of pendency of cheque dishonour cases.
The amendment to the Act would enable courts to order interim compensation to the payee of a cheque, a part of the cheque amount at the trial stage.