Negotiable Instruments Act: Cabinet approves amendment

Negotiable Instruments Act: Cabinet approves amendment

The amendment seeks to provide for interim compensation to the payee of a cheque, both at the trial stage and at the appellate stage, and further allows a court to order interim compensation to the payee of a cheque, a part of the amount at the trial stage itself.

And furthermore, if the drawer is acquitted, the court may direct the payee to repay the amount paid as interim compensation with interest. Similarly, the appellate courts will be enabled to order the appellant to deposit a part of the compensation awarded by the trial court at the time of filing an appeal.

The move follows from the representations from the public and the trading community regarding the injustice caused to payees as a result of pendency of cheque dishonour cases.

[Source: The Hindu Business Line]