India, Cheque Bounce rule: Everything in India is changing in a very rapid way, especially after 8th November when the central government announced the ban of Rs 500 and 1000 old currency notes and often it is hard to know what has changed, now it I changing the cheque bounce rule.
Seeing so many pending cases of cheque bounce, the government of India, is going to peruse harder rules in the case of cheque default by any party, who willingly make the cheque bounce happen. Remember cheque bounce can be costly to you when this law is passed.
The central government is going to bring change in the law relating to the cheque bounce. The people, who intentionally do the cheque bounce, will now be punished within a month or two. The government is going to bring new cheque bounce rule in the next Budget session as per sources.
As per the new rule, if the person whose cheque bounce has happened, within a month he does not pay the cheque amount, with some extra punishment charges, then he will be liable for going to jail. In the current law also the punishment is there but it takes years, long because of the delay in the court running of the cheque cases.
As per sources, many business groups have complained regarding this to the top BJP ministers, as per the business people in case of any cheque bounce, it takes years before a settlement is done.
Currently in India around 20lakh cases are running in the court and many of them are even older than 5 years.
Cheque dishonor, because of inadequate funds in account, is a criminal offence under Section 138 of the Negotiable Instruments (Amendment) Act, 1881, the person has to pay double the amount or jail term up to two years and worst both is applicable.
It is still not clear how the government is going to implement this and how it will finish the old pending cheque bounce cases. A fast track court can be an ideal solution to this.
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