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ARTICLE · 07 JULY 2020

The Negotiable Instrument (Amendment) Act, 2018 – An Overview

The Negotiable Instrument Act, 1881 ("the NI Act") came into being as an Act to define and amend the law relating to promissory note, bill of exchange and cheques.

IndiaLitigation, Mediation & Arbitration

The Negotiable Instrument Act, 1881 ("the NI Act") came into being as an Act to define and amend the law relating to promissory note, bill of exchange and cheques. The NI Act has been amended time and again to ensure and enhance the trust in negotiable instruments.

Indian courts are riddled with the colossal problem of pending cases, with almost 20 per cent of the pending litigation pertains only to cheque dishonor disputes under section 138 of the Negotiable Instruments Act, 1881.

The Central Government through The Negotiable Instrument (Amendment) Act, 2018 has notified amendments to the NI Act by incorporating several new provisions. The insertion of such new provisions in the NI Act is a welcome step aimed at addressing the issue of undue delay, efficacy and efficiency in cases related to dishonor of cheques. This article focuses on two important amendments to the NI Act i.e. Section 143A and Section 148. These sections empower the courts to direct the drawer

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