Question

Under Section 138 of the NI Act, the penalty for 'Dishonour of Cheque' for insufficiency of funds can be:

Q: Answer-Under Section 138 of the NI Act, the penalty for 'Dishonour of Cheque' for insufficiency of funds ca...

Section 138 provides for criminal liability for cheque bounce due to insufficient funds, with a maximum of 2 years in jail or a fine up to double the cheque amount.

A Fine up to the amount of the cheque.

B Imprisonment up to 1 year.

C Imprisonment up to 2 years and/or fine up to twice the amount of the cheque.

D Permanent cancellation of the bank account.

E No criminal liability, only a civil fine.

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Under Section 138 of the NI Act, the penalty for 'Dishonour of Cheque' for insufficiency of funds can be:

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