Question

Under Section 138 of the Negotiable Instruments Act, 1881, what is the maximum punishment for dishonoring a cheque due to insufficient funds?

A Imprisonment up to 1 year or fine up to cheque amount
B Imprisonment up to 2 years or fine up to twice the cheque amount, or both
C Imprisonment up to 6 months or fine up to cheque amount
D Fine only, not exceeding cheque amount
E Imprisonment up to 3 years or fine up to three times cheque amount
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