The Negotiable Instruments (Amendment) Act, 2018 was notified on August 02, 2018.
Key Highlights
Section 143A has been inserted, to direct the drawer of the cheque to pay interim compensation to the Payee in situations of a summary trial or summons case wherein the drawer pleads to be "not guilty". This new provision seeks to cap interim compensation to 20% of the cheque amount.
Another provision introduced as Section 148 specifies that in case the drawer files an appeal against his/her conviction, the Appellate court has the power to direct the drawer to deposit a minimum amount of 20% of the fine or compensation that was awarded by the Trial court.
The amended provisions will provide immediate relief to the payees of dishonoured cheques, the disposal of which consumes considerable time and resources.
