Cheque Bounce New Law that could award interim compensation in cases relating to dishonoured cheques, both at the trial and appellate stages.

*Cheque Bounce New Law*

The Union Cabinet yesterday approved draft amendments in the Negotiable Instruments Act, 1881, that could award interim compensation in cases relating to dishonoured cheques, both at the trial and appellate stages.

The changes would enable a trial court to order payment of a part of the cheque amount as interim compensation to the receiver. If the drawer is acquitted, the court may direct the receiver to repay the amount paid as interim compensation with interest. Similar provisions would be enabled in case of appeals.

Dishonour of cheques due to inadequate funds in the account of the drawer of the cheque or for other reasons causes serious distress in the trade, business and MSME sectors. It causes incalculable loss and inconvenience to payees and erodes the credibility of cheques to a large extent,” said a government official.

The proposed changes will be placed before the winter session of Parliament, the official said. The changes are meant to address various representations from the public and the trading community.

Legal recourse against dishonoured cheques is long drawn as it is relatively easy to file appeals and obtain a stay on proceedings. A receiver of a dishonoured cheque has to spend considerable time and resources in court proceedings to realise the value of the cheque.

“Such delays compromise the sanctity of the cheque transactions,” said the official quoted above.

Cheques are an integral part of the payments system, and form the backbone of trade, which often serve as the security for underlying trade transactions.
*In the interest of Public at large* https://play.google.com/store/apps/details?id=com.advok8

Dishonour of cheque-Legally enforceable debt-Cheque in question issued to advocate towards fees claimed on basis of percentage of subject-matter in litigation-Mere issuance of cheque by client may not debar advocate from contesting liability-If liability is disputed

2017 CJ(SC) 1438
Subject: Constitution, Dishonour of Cheque

*Negotiable Instruments Act, 1881, Section 138-Contract Act, 1872, Section 23-Advocates Act, 1961, Section 49(1)(c)-Dishonour of cheque-Legally enforceable debt-Cheque in question issued to advocate towards fees claimed on basis of percentage of subject-matter in litigation-Mere issuance of cheque by client may not debar advocate from contesting liability-If liability is disputed, advocate has to prove contract-Claim of fees by advocate based on percentage of subject-matter in litigation is against public policy and act of professional misconduct-Cannot be basis of complaint under Section 138-Liable to be quashed-Appeal disposed of.

NI Act S.138 - Offence cannot be adjudicated through the process of plea bargaining - 2017 (5) KHC 16 (SN)

Important Judgments (08/12/2017)

NI Act S.138 - Offence cannot be adjudicated through the process of plea bargaining - 2017 (5) KHC 16 (SN)

Burial and Burning Ground — Practice of cremating body of the dead in the private property of the family of deceased –  District Collector has no jurisdiction to pass prohibitory orders - 2017 (5) KHC 769

Paddy Land Act - Properties not included as paddy land in data bank – Building can be granted if property owner gets an order under Clause 6 of KLU - 2017 (5) KHC 765

Notaries Act, 1952 – Notary attesting power of attorney – However identity of the deponent not ascertained – Is fatal - 2017 (5) KHC 849 (DB)

CrPC S.164 – Any statement given by a person who is accused of an offence cannot be treated as a statement under S.32 of Evidence Act - 2017 (5) KHC 820 (DB)

Service – Appointment — Challenge to — When appointees are identifiable persons, they have been impleaded as party respondents – Resorting to paper publication not proper - 2017 (5) KHC 803  (DB)

Service – KSEB – Causing financial loss – Disciplinary proceedings – Appellate Authority taking disciplinary action – Not improper - 2017 (5) KHC 815

Execution – Amount decreed in an earlier suit between the parties – Cannot be set off in subsequent proceedings - 2017 (5) KHC 15 (DB) (SN)

NI Act S.138 - Accused even after undergoing the sentence can challenge the conviction in appeal - 2017 (5) KHC 17 (SN)

Burial and Burning Ground — Fundamental right is conferred on persons who follow customary or religious rites in the matter of cremation or burial of dead persons as per the respective traditions of the communities concerned - 2017 (5) KHC 769

An order which do not disclose any reason for rejecting the request made to refer the parties to arbitration, cannot be sustained - 2017 (5) KHC 796

Office of the Board of Governors of APJ Abdul Kalam Technological University – Membership is co terminus with the office by virtue of which the member was nominated - 2017 (5) KHC 801 (DB)

There is no mandate that a test identification parade should be conducted for identifying accused - 2017 (5) KHC 820 (DB)

WC Act – Commissioner directing payment of interest at the rate of 12% per annum from the date of accident – Held cannot be said as improper - 2017 (5) KHC 844  (DB)

CPC O.XIII Rule 9 – Return of admitted documents – In a case where Court has found that the deed is forged and for that reason it was set aside, petitioner is not legally entitled to maintain an application for return of documents unless and until the said finding is reversed by Appellate Court - 2017 (5) KHC 846

VAT S.74 — Order permitting to compound, if concluded, cannot be cancelled subsequently - 2017 (5) KHC 858