Of penalties in case of dishonour of certain cheques. It does not however specify the jurisdiction of courts where cheque bouncing cases may be filed. Law of the land the negotiable instruments amendment. Negotiable instrument amendment act 2015 comes in to. Section of the negotiable instruments act states that a negotiable instrument is a promissory note, bill of exchange or a cheque payable either to order or to bearer.
Sep 17, 2015 the union cabinet, chaired by the prime minister shri narendra modi, has given its approval for the proposal to promulgate the negotiable instruments amendment ordinance, 2015. Liability of banker for negligently dealing with bill presented for payment. Sep 16, 2015 it is pertinent to mention that previously on 15 june 2015, the negotiable instruments amendment ordinance, 2015, was passed, which lapsed on 31 august 2015. The ordinance amends negotiable instruments act, 1881. Promulgated by the president in the sixtysixth year of the republic of india. When the maker or holder of negotiable instrument signs the instrument with the intention. In the negotiable instruments act,1881 26 of 1881hereinafter referred to as the principal act, in section 6. Last week union cabinet had approved to promulgate the negotiable instruments amendment ordinance 2015 which redefined the jurisdiction clause in the negotiable instrument act. The union cabinet has approved the promulgation of negotiable instruments amendment ordinance, 2015. Whereas the negotiable instruments amendment bill, 2015 has been passed by the. Lapsing of negotiable instruments amendment ordinance. Be it enacted by parliament in the sixtyninth year of the republic of india as follows. The legal information institute negotiable instruments are mainly governed by state statutory law.
The ordinance amends the negotiable instruments act, 1881. Therefore, as per art 123, this ordinance shall cease to operate on the expiration of a period of 6 weeks w. In the information technology act, 2000 21 of 2000 hereinafter referred to as the principal act, in section 1, in subsection 4, for clause a, the following clause shall be substituted, namely. The basic reason as to why this amendment is brought in is to resolveclarify the jurisdiction issues. According to section of the negotiable instruments act, a negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer. From the information available, it appears that this ordinance has not been repromulgated so far as of the writing of this article on 3 september 2015.
Notwithstanding anything contained in the code of criminal procedure, 1973 or any judgment, decree, order or direction of any court, all cases transferred to the court having jurisdiction under subsection 2 of section 142, as amended by the negotiable instruments amendment ordinance, 2015, shall be deemed to have been transferred under this act, as if that sub. Last week the union cabinet, chaired by the prime minister shri narendra modi, had given its. The ordinance will be deemed to have been in force from june 15, 2015. Once the instrument is transferred, the holder obtains full legal title to the instrument. Negotiable instruments amendment act, 2015 to amend ni. The ucc defines a negotiable instrument as an unconditioned writing that promises or orders the. It does not however specify the jurisdiction of courts where cheque bouncing cases. Sep 03, 2015 the negotiable instruments amendment ordinance, 2015, which was promulgated by the president of india on 15 june 2015, has lapsed on 31 august 2015.
Govt clears ordinance to amend negotiable instruments act. Proposal to promulgate the negotiable instruments amendment. The parliament reassembled on july 21 2015 for the monsoon session. Calculation of the date of maturity of a billofexchange. The proposed amendments to the negotiable instruments act, 1881 the ni act are focused on clarifying the jurisdiction related issues for filing cases for offence committed under section 8 of the ni act.
The cabinet today decided to bring in an ordinance to amend the negotiable instruments act, which provides for filing of cheque bounce cases in place where the cheque was issued, a move that will bene. A bill further to amend the negotiable instruments act, 1881. When the maker or holder of a negotiable instrument signs the same, otherwise than as such maker, for the purpose of negotiation, on the back or face thereof or on a slip of paper annexed thereto, or so signs for the same purpose a stamped paper intended to be completed as a negotiable instrument, he is. Be it enacted by parliament in the sixtysixth year of the republic of india as follows. The provisions of the negotiable instruments amendment act, 2015 shall be deemed to have come into force on the 15th day of june, 2015. Dec 30, 2015 the act will replace negotiable instrument amendment ordinance which was repromulgated on 25 th september 2015. An act further to amend the negotiable instruments act, 1881. The negotiable instruments amendment ordinance, 2015, which was promulgated by the president of india on 15 june 2015, has lapsed on 31 august 2015.
Bhashyam and adigas,the negotiable instruments act, 19th ed. A negotiable instrument means a promissory note bill of exchange or cheque payable either to order or to bearer only the above instruments are governed by ni act. This act may be called the negotiable instruments act, 1881. Negotiable instruments amendment ordinance, 2015 6 of 2015 on 15th june 2015. The negotiable instruments amendment act, 2015 was passed in the lok sabha in may seeking to overturn a supreme court 2014 ruling said the case has. Effect of recent amendments in negotiable instruments act on the. In view of the urgency to create a suitable legal framework for determination of the place of jurisdiction for trying cases of dishonour of cheques under section 8 of the ni act, the government has decided to amend the law through the negotiable instruments amendment ordinance, 2015. The negotiable instruments amendment second ordinance, 2015 was promulgated on september 22, 2015. The negotiable instruments act ordinance, 2015 is passed by the president on immediate basis whereas it has been passed by the lok sabha and is pending in the rajya sabha as the parliament is not yet in session. An ordinance to amend the negotiable instruments act, 1881 ni act has been promulgated by the president of india on june 15, 2015. Negotiable instruments act amendmentsection 8 jurisdiction. Jun 10, 2015 in view of the urgency to create a suitable legal framework for determination of the place of jurisdiction for trying cases of dishonour of cheques under section 8 of the ni act, the government has decided to amend the law through the negotiable instruments amendment ordinance, 2015. An ordinance further to amend the negotiable act, 1881. The ordinance provides for determination of territorial jurisdiction of courts for trying cases relating to offence of dishonour of cheques under section 8 of the negotiable instruments act, 1881 ni act.
The negotiable instruments act, 1881 destinationca. Bill further to amend the negotiable instruments act, 1881. The income tax department never asks for your pin numbers, passwords or similar access information for credit cards, banks or other financial accounts through email the income tax department appeals to taxpayers not to respond to such emails and not to share information relating to their credit card, bank and other financial accounts. Section 8 negotiable instruments act, 1881 an in depth. After the union cabinet, chaired by the prime minister narendra modi, had given its approval for the proposal, president of india has promulgated negotiable instruments amendment ordinance, 2015 6 of 2015. The act will replace negotiable instrument amendment ordinance which was repromulgated on 25 th september 2015. Whereas the negotiable instruments amendment bill, 2015 has been passed by the house of the people and is pending in the council. Jan, 2016 the negotiable instruments act ordinance, 2015 is passed by the president on immediate basis whereas it has been passed by the lok sabha and is pending in the rajya sabha as the parliament is not yet in session. Negotiable instruments amendment second ordinance, 2015 and the negotiable instruments amendment act, 2015. Every negotiable instrument shall be governed by the provisions of this act, and no usage or custom at variance with any such provision shall apply to any such instrument. Negotiable instruments act, 1881 pdf file chapter i preliminary sections 1. Proposed amendments to negotiable instruments, 1881 has focused on clarification of jurisdiction pertaining to issues for filing cases for offences committed. Comment on the negotiable instruments amendment ordinance. President assents negotiable instruments amendment.
President of india has promulgated negotiable instruments amendment ordinance, 2015 6 of 2015. The negotiable instruments amendment and miscellaneous. The president of india has promulgated the negotiable instruments amendment ordinance, 2015 6 of 2015 on 15 th june 2015. Aug 19, 2015 the proposed amendments to the negotiable instruments act, 1881 the ni act are focused on clarifying the jurisdiction related issues for filing cases for offence committed under section 8 of the ni act. Whether the payee or holder of a cheque can initiate prosecution for an offence under section 8 of the negotiable instruments act, 1881 for its dishonour for second time, if he had not initiated any action on the earlier cause of action. The negotiable instruments act, 1881 a negotiable instrument is a written order to pay a fixed sum of money on demand or at a certain time. The president of india has promulgated the negotiable instruments amendment ordinance, 2015 no. Definition of negotiable instrument according to section of the negotiable instruments act, 1881, a negotiable instrument means promissory note, bill of exchange, or cheque, payable either to order or to bearer. The negotiable instruments act, 1881 xxvi of 1881 9th december, 1881 an act to define and amend the law relating to promissory notes, bills of exchange and cheques. Approval to promulgate the negotiable instruments amendment.
Discuss the key benefits of this ordinance necessitating its passage. When the maker or holder of a negotiable instrument signs the same, otherwise than as such maker, for the purpose of negotiation, on the back or face thereof or on a slip of paper annexed thereto, or so signs for the same purpose a stamped paper intended to be completed as a. Jun 17, 2015 president of india has promulgated negotiable instruments amendment ordinance, 2015 6 of 2015. It shall be deemed to have come in to force on the 15th june 2015. Negotiable instruments amendment ordinance, 2015, was promulgated by the president of india on. The amendment makes changes in provisions relating to the territorial. Aug 31, 2016 the provisions of the negotiable instruments amendment act, 2015 shall be deemed to have come into force on the 15th day of june, 2015. Constitution, the president is pleased to promulgate the following ordinance. Negotiable instruments amendment bill, 2017 a aims to amend the negotiable instruments act, 1881, asking the drawer of a cheque that has been dishonoured to pay interim compensation to the complainant. Negotiable instruments amendment ordinance, 2015, was promulgated by the president of india on june 15 2015. A perusal of the text of the ordinance clarifies the impetus for such promulgation and the urgency thereof.
The negotiable instrument act was originally drafted in 1866 by the 3rd indian law. Lapsing of negotiable instruments amendment ordinance 2015. President pranab mukherjee gave his assent to negotiable instruments amendment ordinance, 2015. Jan 24, 2018 the cabinet today decided to bring in an ordinance to amend the negotiable instruments act, which provides for filing of cheque bounce cases in place where the cheque was issued, a move that will bene.
New delhi, the 15 th june, 2015 jyaistha 25, 1937 saka the negotiable instruments amendment ordinance, 2015 no. The clarification of jurisdictional issues may be desirable from the equity point of view as this would be in the interests of the. The amendments to the negotiable instruments act, 1881 the ni act are focused on clarifying the jurisdiction related issues for filing cases for. The ordinance will help to tackle issues related to cheque bounce cases and allow filing of. The negotiable instruments amendment act, 2015 was passed in the lok sabha in may seeking to overturn a supreme court 2014 ruling said the case has to be initiated where the chequeissuing. Whereas the negotiable instruments amendment bill, 2015 had been passed. Negotiable instruments amendment act, 2015 to amend ni act. Cabinet approves new negotiable instruments amendment. An act to define and amend the law relating to promissory notes, bills of exchange and cheques. The negotiable instrument act, 1881 legislative department.
An ordinance further to amend the negotiable instruments act, 1881. Benefits of negotiable instruments amendment ordinance 2015. Negotiable instrument amendment act 2015 comes in to force. A negotiable instrument can be transferred from one person to another. New delhi, the 15th june, 2015jyaistha 25, 1937 the negotiable instruments amendment ordinance, 2015 no. Section 15 in the negotiable instruments act, 1881. It extends to the whole of india but nothing herein contained affects the indian paper currency act, 1871, 3 of 1871. The act defines promissory notes, cheques and specifies penalties for bouncing of cheques, and other violations. If, on the date of the commencement of the negotiable instruments amendment act, 2015, more than one prosecution filed by the same payee or holder in due course, as the case may be, against the same drawer of cheques is pending before different.
Whereas it is expedient to define and amend the law relating to promissory notes, bills of exchange and cheques. I had mentioned in detail the consequences of lapsing of negotiable instruments amendment ordinance 2015 which led to uncertainty of territorial jurisdiction in cheque bounce cases. The proposed amendments to the negotiable instruments act, 1881 the ni act are focused on clarifying the jurisdiction related issues for filing cases for. The amendments to the negotiable instruments act, 1881 the ni act are focused on clarifying the jurisdiction related issues for filing cases for offence committed us 8 of the ni act. Earlier in june 2015, union cabinet had recommended promulgation of this ordinance to the president. The negotiable instruments amendment act, 2015 is focused on clarifying the jurisdiction related issues for filing cases for offence committed under section 8 of the negotiable instruments act, 1881. The negotiable instruments amendment second ordinance, 2015. New delhi, the 15th june, 2015 jyaistha 25, 1937 the negotiable instruments amendment ordinance, 2015 no. Negotiable instrument amendment second ordinance 2015. An ordinance to provide for the enforcement of contractual terms by third parties and for related matters. Jul 24, 2015 the president of india has promulgated the negotiable instruments amendment ordinance, 2015 no. The union cabinet, chaired by the prime minister shri narendra modi, has given its approval for the proposal to promulgate the negotiable instruments amendment ordinance, 2015. Every state has adopted article 3 of the uniform commercial code ucc1, with some modifications, as the law governing negotiable instruments.