Following the lead of Lok Sabha, the Council of States of the Indian Parliament i.e. Rajya Sabha passed the Negotiable Instruments (Amendment) Act, 2017.

As updated in the beginning of this week, this Act envisages payment of interim compensation by the accused under section 138 of the Negotiable Instruments Act, 1982 at two stages i.e. at the summary trial or summons case and at the appellate stage too. The Act achieves this object by introducing two sections 143A and 148.

The Lok Sabha Passed this Bill on 23rd July 2018, and the Rajya Sabha Passed this Bill on 26th July 2018. The only procedural step remaining for brining these provisions into effect is the notification of this Act in the Official Gazette.

Speedy Trial and avoidance of misuse of process of law is envisaged by the Amendment, the consequences of which, be it positive or negative will unfold as it comes into effect.

 

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