Legal Question in Criminal Law in India

amendment to negotiable act 1881 : INTIMATE PRESENT POSITION OF LAW
AMENDMENT TO NEGOTIABLE INSTRUMENT ACT
Law ministry vets summary proposals
NAZMUL AHSAN
The law ministry has vetted the proposed amendments to the Negotiable Instrument Act 1881, clearing way for the finance ministry to move forward with its plan to update the age-old law to contain the growing menace of banking frauds.
The amendments were deemed urgent as the century-old law became obsolete to deal with emerging financial crimes, such as the tactics of delaying the implementation of court verdict against bouncing of bank cheques, officials said.
Recent years have seen rampant practices of filing appeals against court verdicts penalising individuals or organisations for bank cheque frauds, finance ministry officials told New Age.
The amendment proposals include mandatory down payment of 50 per cent of the total amount of penalty before filing an appeal against the court verdict. Currently, no down payment is required for filing appeal.
Financial penalty may go up to maximum three times the amount mentioned in the cheque, dishonoured by bank due to shortage of deposited money.
The law ministry vetted the proposed amendments Saturday about two months after the finance ministry had sent the summary.

Asked on 9/26/06, 5:27 am

1 Answer from Attorneys

0 users found helpful

0 attorneys agreed

Re: amendment to negotiable act 1881 : INTIMATE PRESENT POSITION OF LAW

The contents were perused in reply to which it is to inform you that the pendency of any proposal with law ministry does not mean that the same has become law.there is set procedure to make law and unless the law is duly codified by notification the same does not amount to be law.presently, as per law in appeal the accused has to deposit penalty ammount for getting appeal heard and the court has power in this regard to direct the accused to deposit the penalty ammount.Last ammendment were made in the year 2002 enhancing the period of notice,period for filing of complaint and further the digital ceques/electronic cheques etc.were also included in the definition of cheques.no bill relating to the ammendments as stated by you is pending.the pendency of proposal between the ministry is their internal matter.till date law ministry has not made any bill suggesting the changes as stated by you.in case of any other query you may contact on 9873343288

Siddharth

[email protected]

Answered on 9/27/06, 5:43 am

Mark as helpful