The Lok Sabha on Monday passed the Negotiable Instruments (Amendment) Bill that allows a court hearing a cheque bounce case to direct the drawer — the person who wrote the cheque — to pay interim compensation to the person who filed the complaint.
The interim compensation, to be paid within 60 days of the court’s order, can be up to 20% of the value of the cheque. The court may direct the payee to repay the interim compensation, with interest, if the drawer is acquitted.
While moving the bill for passage, Minister of State for Finance Shiv Pratap Shukla said it would bring down litigation and provide credibility to cheques and the banking system.
The Bill was introduced in the Lok Sabha in January, 2018.
Participating in the discussion, Congress leader Shashi Tharoor said it was a good bill but not sufficient. He urged the government to include fast-track courts exclusively meant for cheque bounce cases.
Supporting the bill, Kalyan Banerjee (TMC) said the objective behind the legislation was that the victim should get justice as soon as possible.
“The endeavour is good but more endeavour has to be taken,” he added.
Making a point over his party’s demand for special status to Andhra Pradesh, TDP MP Ravindra Babu said former Prime Minister Manmohan Singh had given them a cheque (assurance to give special status to his state) but “it has bounced”.
