Union Cabinet clears ordinance in cheque bounce cases

NEW DELHI: The Cabinet on Wednesday also approved an ordinance to amend the Negotiable Instruments Act.

This will enable filing of cheque bounce cases in the place where the cheque was presented for clearance or payment and not the place of issue. This is expected to help bring relief to an estimated 18 lakh people affected by cheque bounce cases across the country. The ordinance was issued as a bill to the effect was passed by Lok Sabha earlier this year but it could not go through the other House.

Briefing reporters after the meeting, Transport Minister Nitin Gadkari said the Supreme Court had passed a judgement that if a cheque was received from someone and it bounces, then the jurisdiction for initiating action lies in the state where it was issued.He said if there were three cases of bounced cheques against one person, then all these cases could be brought to one place and clubbed.