29th August, 2002
Ministry of Law, Justice & Company Affairs  


TACKLING CASES OF BOUNCING OF CHEQUES IN VARIOUS COURTS


The Government in the Department of Justice is executing a pilot project to introduce on an experimental basis the facility of electronic filing of complaints in courts in Delhi in bounced cheque cases. This would facilitate a quick access to courts.

In this connection, the Government has decided to amend the Negotiable Instruments Act, 1881. The Negotiable Instruments (Amendment and Miscellaneous Provisions) Bill, 2002 has been introduced in the Lok Sabha, to this effect, to increase the punishment as prescribed under Section 138 of the Act from one year to two years.

The other proposed amendments intend to increase the period for issue of notice by the payee to the drawer from 15 days to 30 days, provide discretion to the court to waive the period of one month, which has been prescribed for taking cognizance of the case under the Act, and prescribe procedure for dispensing with preliminary evidence of the complainant.

It also seeks to prescribe procedure for servicing of summons to the accused or witness by the court through speed post or empanelled private couriers, summary trial for the cases to speed up disposal of cases and make the offences under the Act compoundable.

There are 13062 cases of bouncing of cheques pending in various court all over the country, presently. Of these, Delhi tops the list with 5417 cases followed by Tamil Nadu with 2320 cases, Maharashtra with 1789 cases, Karnataka with 1260 cases, Andhra Pradesh with 1254 cases, West Bengal with 138 cases, Rajasthan with 51 cases, Gujarat with 48 cases, Madhya Pradesh with 13 cases, Uttar Pradesh with seven cases, Haryana with four cases, Bihar with three cases, Jammu and Kashmir and Uttaranchal two cases each, Goa and Himachal Pradesh one case each.

The proposed amendments follow recommendations of the various committees including the Parliamentary Standing Committee on Finance, representations from various institutions and organizations.