Under section 138 of the Negotiable Instruments Act, 1881, what is the maximum fine for the…

Section 138 of the Negotiable Instruments Act, 1881 permits imprisonment for up to two years, a fine of up to twice the cheque amount, or both.

Choose your answer

Under section 138 of the Negotiable Instruments Act, 1881, what is the maximum fine for the cheque-dishonour offence?

Answer and explanation

Correct answer B

Section 138 of the Negotiable Instruments Act, 1881 permits imprisonment for up to two years, a fine of up to twice the cheque amount, or both.

Option A

Three times the cheque amount exceeds the statutory cap.

Option B

Section 138 sets the cap at twice the amount of the cheque.

Option C

A court can impose that amount, but it is below the statutory maximum.

Option D

Section 138 expressly caps the fine.