What is the maximum term of imprisonment prescribed by section 138 of the Negotiable Instruments Act,…

Section 138 provides for imprisonment for up to two years, a fine of up to twice the cheque amount, or both.

Choose your answer

What is the maximum term of imprisonment prescribed by section 138 of the Negotiable Instruments Act, 1881?

Answer and explanation

Correct answer D

Section 138 provides for imprisonment for up to two years, a fine of up to twice the cheque amount, or both.

Option A

Sixty days is below the statutory maximum.

Option B

Three months is below the statutory maximum.

Option C

One year was the former maximum before Act 55 of 2002 took effect.

Option D

Section 138 sets a maximum of two years’ imprisonment.