Negotiable instruments act

Dear Sir/ Mam, The Negotiable Instruments (Amendment) Bill, 2017 was introduced in Lok Sabha on January 2, 2018.  But as of now, the status of The Bill is still pending and has not been added in the provision.

Two new Sections i.e 143A and 148 has been proposed to be inserted under the NI Act,1881:

1.Section 143A- It empowers the Court to order the drawer of the cheque to pay Interim Compensation to the complainant:

i.In case of a summary trial or a summons case, where the drawer pleads not guilty to the allegations made in the complaint, and

ii.In any other case, upon framing of the charges.

Quantum of Compensation- The  amount shall not exceed 20% of the amount of the Cheque.

On Acquittal - In case where the drawer is acquitted then the payee may be directed to refund the entire amount of interim compensation along with the RBI’s Prevailing interest rate, to the drawer.

2.Section 148 – It empowers the Appellate Court to order payment pending the appeal against conviction.

The Appellate Court may order the appellant to deposit an amount which shall be a minimum of 20% of the fine or compensation awarded by the trial Court.

This amount shall be in addition to the amount already paid by the appellant under Section 143A.

This deposit may be released by an order for payment to the complainant at anytime during the pendency of the appeal.

On Acquittal - In case of the appellant being acquitted, the court shall direct the complainant to refund the entire deposit amount along with the RBI’s prevailing interest rate to the appellant.

I hope it was sufficient information for your query.