Govt brings bill to curb delay tactics by drawers

The Government on Tuesday piloted the Negotiable Instruments (Amendment) Bill in Lok Sabha to cut down pendency of the cheque dishonour cases by providing for interim compensation of 20% of the amount in trial and appellate courts. Over 60 lakh cheque bouncing cases are clogging the criminal justice system.

Minister of State Shiv Prasad Shukla introduced the Bill on behalf of Finance Minister Arun Jaitley that seeks to curb the malpractice of delay tactics by the unscrupulous drawers of the dishonoured cheques due to easy filing of appeals and obtaining stay on proceedings under the existing law.

The Bill says the amendments “will discourage frivolous and unnecessary litigation which would save time and money and strengthen the credibility of cheques.”

The Bill empowers the trial court to order the drawer of the cheque to pay interim compensation not exceeding 20% of the cheque amount, if he pleads not guilty to the accusation or on framing of charges, within 60 days of the order that can be extended by maximum 30 days on sufficient cause shown by him.

If the drawer of the cheque challenges the lower court’s final order in the appellate court, he has to deposit with the latter 20% of the fine or compensation awarded by the trial court within 60 days that can be extended by maximum 30 days.