NEW DELHI: The Union
Cabinet on Wednesday cleared amendments to the Negotiable Instruments
Act dealing with bouncing of cheques to once again make it possible to
file a case where the holder
of the cheque is based.
The move is meant to "clarify" the jurisdiction for filing cases after the Supreme Court ruled that the case has to be initiated where the cheque-issuing branch was located.
"The object of the NI Act is to encourage the usage of the cheque and enhancing the credibility of the instrument so that normal business transactions and settlement of liabilities could be ensured. The clarification of jurisdictional issues may be desirable from the equity point of view as this would be in the interests of the complainant and would also ensure a fair trial," the Centre said.
of the cheque is based.
The move is meant to "clarify" the jurisdiction for filing cases after the Supreme Court ruled that the case has to be initiated where the cheque-issuing branch was located.
"The object of the NI Act is to encourage the usage of the cheque and enhancing the credibility of the instrument so that normal business transactions and settlement of liabilities could be ensured. The clarification of jurisdictional issues may be desirable from the equity point of view as this would be in the interests of the complainant and would also ensure a fair trial," the Centre said.
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