Negotiable Instrument Act

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Cabinet Approves Amendment to Law on Cheque Bounce Cases

The Cabinet on Friday approved an amendment to a current law to allow for payment of an interim compensation in cheque dishonour cases with a view not to allow unscrupulous elements holding payments, pending long trial, sources said.

An amendment to the Negotiable Instrument Act will allow a court to order for payment of an interim compensation to those whose cheques have bounced due to dishonouring parties, a move aimed at promoting a less cash economy.

The amendment is likely to be introduced in the ongoing Winter Session of Parliament.