BACHELOR OF BUSINESS ADMINISTRATION

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BUSINESS ADMINISTRATION

BUSINESS LAW

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The Negotiable Instruments (Amendment) Bill, 2017 inserted a provision allowing a court trying an offence related to cheque bouncing, to direct the drawer (person who writes the cheque) to pay interim compensation to the complainant. The interim compensation will not exceed ____ % of the cheque amount?
A
15%
B
30%
C
33%
D
20%
Explanation: 

Detailed explanation-1: -Deposit in case of appeal: The Bill inserts a provision specifying that if a drawer convicted in a cheque bouncing case files an appeal, the appellate court may direct him to deposit a minimum of 20% of the fine or compensation awarded by the trial court during conviction.

Detailed explanation-2: -This Act provides that the compensation amount should not exceed 20% of the original amount in the cheque. This period of 60 days must be followed by another period of 30 days, and the court may also order the drawer to provide the requested compensation within the next 30 days.

Detailed explanation-3: -There is presumptions under Section 118 and 139 of the Negotiable Instruments Act in favour of holder of the cheque. Until contrary is proved, presumption is in favour of holder of cheque that it has been drawn for discharge of debt or liabilities.

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