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ARTICLE · 31 AUGUST 2018

Cheque Bouncing – Amendments To The Negotiable Instruments Act, 1881

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The Negotiable Instruments Act, 1881 ("NI Act") has been amended from time to time to make the law relating to dishonor of the cheque more stringent against unscrupulous drawers of cheques.

IndiaFinance and Banking
Rupal Bhatia
Rupal Bhatia
Saurabh Chaturvedi
Saurabh Chaturvedi
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The Negotiable Instruments Act, 1881 ("NI Act") has been amended from time to time to make the law relating to dishonor of the cheque more stringent against unscrupulous drawers of cheques. Repeated efforts have been made both by the Legislature and the Judiciary to curb the blatant abuse of the process of law by the accused who delay the proceedings for dishonor of cheques issued by them. However, despite several efforts, the law relating to dishonor of cheques have failed to give respite to the complainants (payees of the cheques). Accused not only delay the proceedings at the stage of trial but also harass the complainant by filing appeal against the order of the trial court thus leaving the complainant struggling with tedious, time-consuming and cumbersome court procedures without getting any timely relief.

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