Lok
Sabha on 13 May 2015 passed The Negotiable Instruments (Amendment) Bill, 2015
by a voice vote.
The
Bills amends the Negotiable Instruments Act, 1881 in order to make
cheque-bounce filing of cases more convenient for check payees (person who
receives the cheque).
About Bill
1. The
bill adds provision to specify the territorial jurisdiction of the courts in
cases related to bouncing of cheques which was not present in the parent Act.
2. It
says that cases in this regard need to be filed only in a court in whose
jurisdiction the bank branch of the payee lies.
3. It
also adds provision related to more than one case is filed against the same
person before different courts for bouncing of cheques. In this matter, the
case will be transferred to the court that has appropriate jurisdiction.
4. The
bill also amends the definition of cheque. Now it defines it as cheque in
the electronic form which is signed in a secure system with a digital
signature or using electronic system and drawn in electronic medium using any
computer resource.
About
Negotiable Instruments Act, 1881
1. The
Act defines bills of exchange, promissory notes, cheques and creates penalties
for issues such as bouncing of cheques.
2. It
also specifies circumstances under which complaints for cheque bouncing can be
filed.