Highlights of the Negotiable Instruments (Amendment And Miscellaneous Provisions) Act, 2002

 

*     Cheque can be issued in electronic form including the truncated cheque in its electronic image.

 

*     Cheque can be singed using digital signature and asymmetric crypto system.

 

*     Drawee bank can demand any information regarding the truncated cheque from the bank holding the same when the electronic image of the cheque is presented and there is a reasonable suspicion.

 

*     Receiving bank can retain the truncated cheque even after the payment if the cheque is an electronic image of a truncated cheque.

 

*     Certificate issued on the foot of the printout of the electronic image of the truncated cheque to be treated as prima facie proof of the payment.

 

*     Punishment for dishonour of cheque due to insufficiency of funds in drawer's account which was upto one year imprisonment or with fine increased upto two years imprisonment or with fine.

 

*     Limitation period to issue notice to the drawer of the dishonoured cheque increased from 15 days to 30 days.

 

*     Cognizance can now be taken even if the complaint is made after the expiry of the stipulated period of one month provided the complainant satisfied the court that he had sufficient cause for not making the complaint within such period.

 

*     Summons can be served by speed post or by authorised courier services.

 

*     Summons sent by post or authorised courier services if not accepted, will be treated as duly served.

 

*     The provisions of summary trial in the Code of Criminal Procedure, 1973 made applicable and the offences shall be tried by first class Judicial Magistrate or Metropolitan Magistrate.

 

*     Trial to be concluded as expeditiously as possible and the effort to be made to conclude the trial within a period of 6 months.

 

*     Offences under the Act made compoundable.

 

*     In case of conviction in a summary trial the Magistrate has been empowered to pass a sentence not exceeding one year imprisonment and fine not exceeding Rs. 5000/-.

 

*     Directors of companies who are nominated Directors in the employment of Central Government or State Government or financial corporations, owned or controlled by Central or State Government exempted from prosecution.