What is the maximum term of imprisonment under section 138 of the Negotiable Instruments Act, 1881 for…
Negotiable Instruments Act section 138 permits imprisonment up to two years, a fine up to twice the cheque amount, or both, subject to its statutory conditions. Two years is…
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What is the maximum term of imprisonment under section 138 of the Negotiable Instruments Act, 1881 for cheque dishonour for insufficiency of funds, where the statutory conditions are satisfied?
Answer and explanation
Correct answer D
Negotiable Instruments Act section 138 permits imprisonment up to two years, a fine up to twice the cheque amount, or both, subject to its statutory conditions. Two years is a maximum, not a mandatory sentence.
Option feedback
Option A
Three months is below the statutory maximum.
Option B
Six months is below the statutory maximum.
Option C
One year is the superseded maximum; current law permits two years.
Option D
Two years is the current maximum term.
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