The Lok Sabha on August 6th 2015, passed the Negotiable Instruments (Amendment) Bill, 2015, to ensure a fair trial in cheque bounce cases.
The Negotiable Instruments (Amendment) Bill, 2015 was introduced in the Lok Sabha on May 6, 2015. The Bill seeks to amend the Negotiable Instruments Act, 1881. The Act defines promissory notes, bills of exchange, cheques and creates penalties for issues such as bouncing of cheques.
The Bill amends the Act to state that cases of bouncing of cheques can be filed only in a court in whose jurisdiction the bank branch of the payee (person who receives the cheque) lies. If a complaint against a person issuing a cheque has been filed in the court with the appropriate jurisdiction, then all subsequent complaints against that person will be filed in the same court, irrespective of the relevant jurisdiction area. If more than one case is filed against the same person before different courts, the case will be transferred to the court with the appropriate jurisdiction.