Parliament passes Negotiable Instruments (Amendment) Bill, 2015
Parliament passed the Negotiable Instruments (Amendment) Bill, 2015. It was first passed by Lok Sabha in August 2015 and later in Rajya Sabha in December 2015.
The bill seeks to amend The Negotiable Instruments Act, 1881 in order to make cheque-bounce filing of cases more convenient for check payees (person who receives the cheque).
Key features of 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.
- 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.
- 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. The bill also amends the definition of cheque.
- Redefines 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.
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Month: Current Affairs - December, 2015