Negotiable Instruments (Amendment) Act, 2015, notified

The government on Tuesday said it has notified the Negotiable Instruments (Amendment) Bill, 2015 to clarify the jurisdictional issue for filing of cheque dishonour cases that was approved by parliament in its recent Winter Session.

"The provisions of the Negotiable Instruments (Amendment) Act, 2015 shall be deemed to have come into force on the 15th day of June, 2015, the day on which the Negotiable Instruments (Amendment) Ordinance, 2015 was promulgated to further amend the Negotiable Instruments Act, 1881," a finance ministry release here said.

The amendments to the Negotiable Instruments Act, 1881 are focused on clarifying the jurisdiction related issues for filing cases for offence committed under section 138 of the act.

The amendment provides that jurisdiction for filing of cheque dishonour cases will only be a court within whose local jurisdiction the bank branch of the payee where he delivers the cheque for payment is located.

Further, where a complaint has been filed against the drawer of a cheque in the court having jurisdiction under the new scheme of jurisdiction, all subsequent complaints arising out of section 138 against the same drawer shall be filed before the same court, irrespective of whether those cheques were presented for payment within the territorial jurisdiction of that court or not.

It has also been provided that if there are more than one prosecution cases against the same drawer of cheques before different courts, the court shall transfer the case to the court having jurisdiction.

According to the government, the clarity on jurisdictional issues for trying cheque bouncing cases would increase the credibility of the cheque as a financial instrument.