New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    For what term of imprisonment an offender under section

    138 of the negotiable instrument Act can be punished?
    A For a term which may extend to two years Correct Answer Incorrect Answer
    B For a term which may extend to one year Correct Answer Incorrect Answer
    C For a term exceeding three years Correct Answer Incorrect Answer
    D For a term exceeding three years Correct Answer Incorrect Answer

    Solution

    As per Negotiable Instruments Act, 1881- S. 138. Dishonour of cheque for insufficiency, etc., of funds in the account .—Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provision of this Act, 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:

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