Narendra Modi Cabinet clears ordinance in cheque bounce cases

By: | Updated: June 11, 2015 12:07 PM

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.

cheque bounce casesCheque 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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