Today, Loksabha has passed a bill which will allow to fill a process of cheque bounce at the place it is presented for clearance and not the place of issue. Jayant Sinha, Minister of State for Finance said that “The improvements in the negotiable instruments act will have implications for over 18 lakh cheque bounce cases pending in various courts.
The bill was sent earlier to replace an ordinance which was re-promulgated. However it was passed by the Lok sabha, it could not be approved by the Rajya sabha.
Jayant Sinha said that “ It is a small bill but has deep implications for the economy and it will further enable execution of the contract.” He also added that this action will help small traders, large corporates especially telecom companies which are facing a large backlog of cheque bounce cases.
Finance minister, Mr. Arun Jaitley intervened during the discussion of members’ concerns for setting a time-frame to deal with cheque bounce cases saying that though there was no time-frame, the act did provide procedures for resolution of such disputes and the onus on following them was on the courts. He added that the court could send notices through e-mails or any other faster mode of communication to expedite resolution of disputes.
Arun Jaitley was responding to concerns expressed by some members that the practice of issuing summons through the postal department was resulting in the delay in resolution of cheque bounce cases.
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