NEGOTIABLE INSTRUMENTS (AMENDMENT) ACT,2018
Negotiable Instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer. In India, law relating to negotiable instruments is provided in the Negotiable Instruments Act, 1881 which come into force on March 1, 1882. It was amended from time to time. In 1988, section 138 was inserted making the bouncing of cheques a punishable offence with punishment of imprisonment or fine or both. The object of criminalizing dishonour of cheque was to enhance acceptability of cheques in business transactions by preventing harassment of honest cheque bearers. Later on two Sections i.e. 143A and 148 was inserted to reduce unnecessary delay in legal proceedings related to bouncing of cheques and provide relief to the payee in such cases. The objective of these amendments was to enhance credibility of cheque issuances in business transactions. The present paper focused on the proposed amendment in Negotiable instrument Act. And to study how the latest amendment contributed in ease of doing business.
KEYWORDS: Negotiable instrument, interim compensation