Recent Amendments to the Negotiable Instruments Act: Streamlining Cheque Dishonour Proceedings
By Abhishek Jat, Advocate The legislative framework governing dishonoured cheques has undergone substantial transformation, addressing longstanding procedural inefficiencies that plagued the adjudication process. These amendments to the Negotiable Instruments Act represent a paradigm shift in how cheque bounce cases are processed through the judicial system, with significant implications for both complainants and defendants. The revised provisions introduce several procedural innovations designed to expedite case resolution. Perhaps most notably, cheque dishonour cases now proceed through summary trials rather than regular criminal proceedings, substantially reducing the time required for adjudication. The legislative mandate stipulates disposal within six months from filing, a marked improvement from the previous three-to-five-year timeframe that contributed to judicial backlogs. A cornerstone of the amended legislation is the provision for interim compensation. Section 143A now re...
