- Ordinance aimed at speedy disposal of cases.
- When cheque were issued as a negotiable instrument, there was always a possibility that the same being issued without a proper balance in the account of drawer(or payer). In a view to protect the drawee(or payee) of the cheque, a need was felt that dishonouring the cheque should be made a punishable offence.
- Pending cases to be tried in the first court.
- Court cases to remain at the same court.
- Dishonour Cheques - 2 Years punishment.
An estimated 18 lakh cheque bounce cases are there across the country, of which about 38,000 are pending in High Courts. The amendment provides that cases of bouncing of cheques can be filed only in a court in whose jurisdiction the bank branch of the payee (person who receives the cheque) lies.
If a complaint against a person issuing a cheque has been filed in the court with the appropriate jurisdiction, then all subsequent complaints against that person will be filed in the same court, irrespective of the relevant jurisdiction area.