The Lok Sabha on Monday passed the Negotiable Instruments (Amendment) Bill that allows a court hearing a cheque bounce case to direct the drawer — the person who wrote the cheque — to pay interim compensation to the person who filed the complaint.

The interim compensation, to be paid within 60 days of the court’s order, can be up to 20% of the value of the cheque. The court may direct the payee to repay the interim compensation, with interest, if the drawer is acquitted.

Sign up to receive our newsletter in your inbox every day!

Please enter a valid email address.

Our existing notification subscribers need to choose this option to keep getting the alerts.