Thu. Sep 24th, 2020

The Negotiable Instruments (Amendment) Ordinance, 2015

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On 15.06.2015,
the President of India promulgated the Negotiable Instruments (Amendment)
Ordinance, 2015. The objective of the Ordinance is to amend the provisions of
Negotiable Instruments Act, 1881, for speedy disposal of cases relating to
dishonour of cheque. The Negotiable Instruments (Amendment) Bill, 2015 has been
passed by the Lok Sabha, however it is still pending in the Rajya Sabha.
Whereas, the Parliament is not in Session, the President on the satisfaction
that the circumstances exist which renders is necessary for him to take
immediate action, promulgated the said Ordinance.

 The Ordinance provides as follows:

Substitutes Section 6, Explanation
I, clause (a) with following clause:

‘‘a cheque in the electronic form” means a cheque drawn in
electronic  medium by using any computer
resource and signed in a secure system with digital signature (with or without
biometrics signature) and asymmetric cryptosystem or electronic signature, as
the case may be;

Inserts Explanation III after
Explanation II as “the expressions used in this section shall have the
same meanings as assigned to those expressions in the Information
Technology Act, 2000”;

Inserts Section 142 (2) which
provides that the offence under Section 138 shall be inquired into and
tried only by a court within whose local jurisdiction the bank branch of
the payee, where the payee presents the cheque for payment, is situated;

Inserts a new Section 142 A, which
provides that  notwithstanding
anything contained in the Code of Criminal Procedure, 1973 or any
judgment, decree, order or directions of any court, all cases arising out
of Section 138 which were pending in any court, whether filed before it,
or transferred to it, before the commencement of the Negotiable
Instruments (Amendment) Act, 2015, shall be transferred to the court
having jurisdiction under sub-section (2) of section 142 as if that
sub-section had been in force at all material times.

 

-Ministry of Law & Justice
Source: Legal news India

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