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Dishonor of Cheque


Team LawDocs

In the wake of the recent global outbreak of the novel pandemic coronavirus (Covid-19) and its impact in India. It is evident from the economic situation. That businesses and various other commercial ventures have incurred several losses, both economic and otherwise.  One of the many efforts of the government to curb this situation is the Government of India’s objective to increase business opportunities and ease in the country leading to nationwide movement campaigned as ‘sabka saath, sabka vikash, sabka vishwaas’. 

Under the said campaign the Union finance ministry has proposed to decriminalize. In as may 36 section across 19 legislations including the Negotiable Instruments Act, 1881. The said step would aim to substitute the criminal liability with compoundable monetary penalties of a civil nature. This would also mean that the proposal would recategorize these offences from criminal into civil nature. And there would no longer be a punishment in the form of imprisonment. The central government has also sought suggestions and opinions from general public on the same. 

The finance ministry sees this as an attempt to improve the ease of doing business and increase the use of negotiable instruments as a mode of transaction. The same also said to unclog the judicial system and remove the burden from judiciary to adjudicate. Apart from the Negotiable Instruments Act, other legislations that include the list are Insurance Act, 1938, SARFAESI, Reserve Bank of India Act, 1934, Payment and Settlement Systems Act, 1934 etc. 


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