Letters: Bizarre amendment

This is with reference to the recent news about the Union Cabinet approving an amendment to law on cheque bounce cases. Though the objective is to curb delay tactics by unscrupulous drawers of dishonoured cheques, relatively easy filing of appeals and obtaining stays on proceedings, the remedy suggested seems to be counterproductive. The amendment will allow the court to order interim compensation to those whose cheques have bounced. However, if the drawer of the cheque is acquitted, the court may direct the payee to repay the amount paid as interim compensation with interest. This is a bizarre amendment. Instead of settling the cases, this adds to further litigation if the payee doesn’t repay the interim compensation resulting in strain on the justice delivery system. If the objective of the amendment is in line with the government push to make India a less-cash economy and remove distress in trade and business, especially in the micro, small and medium enterprises sector, the more appropriate recourse should be as follows. The Centre should implement a stringent system in which cheques are necessarily accepted. A person dishonouring a cheque should get only one chance, say 14 days, to make amends. Else, there should be a court order sentencing imprisonment for the number of days commensurate with the amount of the cheque dishonoured.

Naresh Saxena New Delhi

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