Lok Sabha passed the Negotiable Instruments (Amendment) Bill, 2015. The Bill provides for filing of cheque bounce cases at the place where a cheque is presented for clearance and not the place of issue.
The Bill seeks to amend the Negotiable Instruments Act, 1881. It will have implications for over 18 lakh cheque bounce cases pending in various courts.
The Act defines promissory notes, bills of exchange, cheques and creates penalties for issues such as bouncing of cheques. The Bill amends the Act to state that cases of bouncing of cheques can be filed only in a court in whose jurisdiction the bank branch of the payee (person who receives the cheque) lies.