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      Question

      The maximum term of imprisonment that may be imposed for

      an offence under Section 138 is:
      A Six months Correct Answer Incorrect Answer
      B One year Correct Answer Incorrect Answer
      C Two years Correct Answer Incorrect Answer
      D Three years Correct Answer Incorrect Answer
      E Five years Correct Answer Incorrect Answer

      Solution

      Section 138 provides that a person who commits the offence shall be punished with imprisonment for a term which may be extended to two years, or with fine which may extend to twice the amount of the cheque, or with both. The two-year maximum was substituted by the 2002 amendment (earlier one year). The fine can be up to double the cheque amount, making the combined penalty significant.

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