MADURAI: The Tamil Nadu Chamber of Commerce and Industry has urged the Union Finance Minister to make sure that cheque bounce case must be considered as criminal offence and it should not be made as a criminal offence as being contemplated in certain circles.
“Currently as per Section 138 of the Negotiable Instruments Act 1881, if a cheque deposited is returned by the Bank with insufficient / no funds tag, it is considered as a criminal offence and a criminal case can be filed against the drawer of the cheque. Now the Union Government is contemplating to change the offence as a civil misdemeanor instead of as a criminal offence and sought comments/views on the proposal from the public through a notification issued on 8th of this month. TN Chamber strongly disapproves this injudicious and uncalled for move by the Union Government,” Mr.N.Jegatheesan, president, Tamil Nadu Chamber of Commerce, has said in a press statement issued in Madurai on 25th June 2020.
Since the Act prescribes imprisonment for a term which may be extended to two years or fine which may extend to twice the amount of the cheque or both, this crime has been gradually decreasing or else those who intend to procrastinate payment of legitimate dues and indulge in cheating will be prompted to give cheques as they like without adequate balance in their bank accounts, he said in the press statement.
Mr.Jegatheesan has cautioned today that fraudulent trade practice can be curbed only with strict rules and their enforcement. “At a time when the trade and industry in the country have been clamouring for swift disposal of cheque bouncing cases for lack of funds in bank accounts and award punishments for the tricksters, the present move by the Union Government to decriminalize such offenses will have serious repercussions on the business growth and industrial development in the country and
cause deceleration of the foreign investments into the country,” the Tamil Nadu Chamber of Commerce has said here.
The proposal is unequivocally contrary to the government’s ease of doing business dogma. “It is unjustified to change the offence as civil offence just to reduce pending cases in criminal courts. Although dishonoring of cheques for other reasons than insufficient funds by banks may be
treated as criminal or civil offence, we emphatically request the Union Finance Minister to consider bouncing of cheques given in trade and industrial activities like purchase of goods etc. and in service sector on account of lack of funds in bank accounts as criminal offences only,” Mr.Jegatheesan has appealed.
