The Union Cabinet, chaired by the Prime Minister Narendra Modi has approved a proposal to promulgate the Negotiable Instruments (Amendment) Ordinance, 2015. Modi government has decided to amend the said Act, which provides for filing of cheque bounce cases at places where the cheque was issued. It will benefit over 18 lakh customers. The Supreme Court in the past gave a ruling that if a cheque bounces the jurisdiction for initiating action lies in the State where it was issued, said Union Minister Nitin Gadkari said after the Cabinet meeting.
It was said that 18 lakh such cases were in various courts. The government had introduced a Bill in this context in the Parliament but the Rajya Sabha rejected it. In order to give relief to cheque bouncing victims the Modi government has brought the ordinance, the minister said.
Further, if there were three cases of bounced cheque against one person all these cases could be brought in one place, Gadkari said. The proposed amendments to the Act are focused on clarifying the jurisdiction related issues for filing cases for offence committed under section 138 of the NI Act. This would be in the interests of the complainant and would also ensure a fair trial.