“Legislation can take away basis of judgment”, Madras HC upholds validity of Section 142(2), NI Amendment Act

A challenge to the validity of Section 142(2) of the Negotiable Instruments Act recently led the Madras High Court to reiterate that subsequent legislation can take away the basis of judgment through validating acts.

Section 142(2) was introduced by way of a 2015 amendment to the Negotiable Instruments Act, 1881. The provision concerns which court has the jurisdiction to deal with cases regarding the dishonor of a cheque.

Prior to the 2015 amendment, a three-judge Bench of the Supreme Court had laid down certain guidelines on the issue in the 2014 judgment in Dashrath Rupsingh Rathod v. the State of Maharastra.

Subsequently, Section 142(2) was introduced to clarify ambiguities in the field. The petitioner before the Madras High Court challenging this amendment on the ground that it was completely contrary to the Supreme Court’s judgment in Dashrath Rupsingh Rathod.

WhatsApp chat