Questions & Answers
Does the new law on cheque decriminalization clear active bounced cheque cases?
So there is this new law applicable on Jan 2, 2022, where convicts of bounced cheques will all be cleared and found innocent.
Question 1: Will this apply to civil cases that have passed all stages and are under execution?
Question 2: Will all this be cleared automatically or are there procedures to be done by the convict to fix and if so what are they?
Thank you.
The new law doesn't say anything that the defaulter will be cleared of all the charges and will be declared innocent. I presume you have interpreted the law incorrectly.
As per the new amendment, the scope for the criminalization of returned cheques due to insufficient funds has been narrowed and confined to cases of bad faith and other cheque crimes.
This will replace decriminalization with preventive measures, coupled with deterrent alternative penalties to reduce the misuse of cheques.
Civil cases' orders will be applicable and nothing changed, only the criminalization of cheque dishonor article is repealed.
Contact me on the phone for more details.
