Negotiable Instruments (Amendment) Bill was passed in Lok Sabha by NDA Government

When NDA government passed The Negotiable Instruments (Amendment) Bill 2015 bill in Lok Sabha its own members asked questions regarding it wherein filing of such cases was made more easier for payer in a check bounce case and BJP members itself asked the government, that it may be used by corporates to harass an ordinary person.  The Bill was passed by a voice vote and then Jayant Sinha, Minister of State for Finance said that this bill will boost the veracity of financial system and would not amount to common man being harassed.

Mr Jayant Sinha told that this law would help reduce the cheque bounce cases which were pending in the courts. At present nearly 259 courts were dealing with 21 lakh cheque bounce matters and this new legislation will help reduce the burden on the court. Finance Minister Arun Jaitley had previously told while presenting the said bill, that the new law would address the payee or money lender’s difficulties which they faced while filing case under Section 138 of the Negotiable Instruments Act. BJP members like R.K. Singh, S.S. Ahluwalia, and P.P. Choudhary told that the corporates can file cases against an ordinary person or who are their clients using this present law.  Mr Singh address the house and said that it may add to harassment of ordinary person.  Then the minister responded to the statement of its members by saying that this law is needed to strengthen the financial system and thus very much needed in a cashless society.  The Negotiable Instruments Act, 1881 defines promissory notes, bills of exchange, cheques and also states about penalties for giving bounced cheques.  It further states the different circumstances under which a person can file a cheque bounce cases.

The bill has added that cases of cheque bounce should be filed in a court whose jurisdiction the bank of payee lies or its branch.  If there are many cases pending against the same person then it can be transferred to the court with proper jurisdiction. The amended bill also has amended the meaning of the cheque which includes electronic cheque too which is signed through secure system and which has digital signature on it.

by Sushma Javare.