1. Narendra Modi Cabinet clears ordinance in cheque bounce cases

Narendra Modi Cabinet clears ordinance in cheque bounce cases

Cheque bounce cases: An ordinance to help lakhs of persons battling cheque bounce cases far away from their place was today cleared by the Union Cabinet, which will be the 14th ordinance of the Narendra Modi government in a little over a year.

By: | New Delhi | Updated: June 11, 2015 12:07 PM
cheque bounce cases

Cheque bounce cases ordinance: Briefing reporters after the meeting chaired by Prime Minister Narendra Modi, 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. (PTI)

An ordinance to help lakhs of persons battling cheque bounce cases far away from their place was today cleared by the Union Cabinet, which will be the 14th ordinance of the Narendra Modi government in a little over a year.

The ordinance, which will amend the Negotiable Instruments Act, 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.

There are an estimated 18 lakh people facing cheque bounce cases across the country.

The ordinance was necessitated as a bill to help the litigants in the cheque bounce case was passed by Lok Sabha earlier this year but it could not go through the other House.

Briefing reporters after the meeting chaired by Prime Minister Narendra Modi, 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.

“18 lakh such cases in various courts…Government had brought a Bill in this regard in Parliament. Rajya Sabha could not pass it. So to give relief to these people, government has brought this ordinance,” he said adding it will benefit these people.

The land ordinance, which was issued for the third time last month, was the 13th executive order of the NDA government since it came to power in May last year.

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  1. K
    Krishnamurthi
    Jun 11, 2015 at 8:49 am
    Good move. Do not know how and why, Supreme Court had ped 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. In fact the presenter of the cheque deposits in antition of money. When it bounces back he has to move away from his home town to the place from where the cheque was issued, which makes him to spend further along with mental agony. By this ordnance those who issue a cheque will be careful in future as he has to move to a far off place to which he has issued cheque.
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