SC suggests fine for bounced cheques
The Supreme Court has suggested that the Negotiable Instruments Act, 1881, could be amended so that a convict in a cheque bounce case is made to pay a fine from which the complainant can be paid a compensation.
“One other solution is a further amendment to the act so that in all cases where there is a conviction, there should be a consequential levy of fine of an amount sufficient to cover the cheque amount and interest thereon, at a fixed rate of 9 percent per annum, followed by award of such sum as compensation from the fine amount,” said the apex court bench of Justice R V Raveendran (since retired) and Justice R M Lodha in a recent judgment.
Speaking for the bench Justice Raveendran said: “This would lead to uniformity in decisions, avoid multiplicity of proceedings (one for enforcing civil liability and another for enforcing criminal liability) and achieve the object of Chapter XVII of the act, which is to increase the credibility of the instrument.
This is, however, a matter for the Law Commission of India to consider,” the judgment further said.
