CHEQUE BOUNCE : A New Twist!!

50% Fine Deposit Mandatory For Appeal Against Conviction For Cheque Bounce: Proposed Amendment

 

In his budget speech, Finance Minister Arun Jaitley had indicated towards introduction of amendments to the Rules made under the Act.

“As we move faster on the path of digital transactions and cheque payments, we need to ensure that the payees of dishonoured cheques are able to realize the payments. The government is, therefore, considering the option of amending the Negotiable Instruments Act suitably,” Mr. Jaitley was quoted assaying.

To an amendment proposed to be introduced in the Negotiable Instruments Act, 1881, a convicted defaulter would have to deposit half of the imposed fine or compensation as a pre-condition for admitting his appeal before an Appellate Court.
The Appellate Court, however, has a discretionary power to waive the condition in appropriate cases, albeit after providing reasons for the exemption in writing. The Court could, further, release the deposited amount to the aggrieved complainant in the case.

However, an alternative amendment proposes to provide the Court with the power to direct deposit of fine amount as a condition for suspension of sentence pending appeal.

In his budget speech, Finance Minister Arun Jaitley had also indicated towards introduction of amendments to the Rules made under the Act. “As we move faster on the path of digital transactions and cheque payments, we need to ensure that the payees of dishonoured cheques are able to realize the payments. The government is, therefore, considering the option of amending the Negotiable Instruments Act suitably,” Mr. Jaitley was quoted as saying.

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