Under section 138 of the Negotiable Instruments Act, 1881, the maximum punishment prescribed is

Option A: Imprisonment upto One year and fine upto the amount of cheque

Option B: Imprisonment upto Two years and fine upto the amount of cheque

Option C: Imprisonment upto Two years and fine upto the twice the amount of cheque

Option D: None of the above

Correct Answer

Option: c

Explanation

Section 138 provides that when the cheque is dishonored for insufficiency of funds or for any of the prescribed reasons, the one who is at defaulter can be punished with imprisonment for a term which may extend to two years, or with fine which may extend to twice the amount of the cheque, or both.

Sample Mock Tests for Practice

AIBE XVII 2023 (BCI-FEB-2023-SET-A) (ALL INDIA BAR EXAM 2023)

BIHAR LOWER JUDICIAL SERVICES EXAM 2020

THE INDIAN EVIDENCE ACT, 1872 (PAPER – 02 Q. NO. 41 TO 80)

THE CONSTITUTION OF INDIA, 1949 (PAPER – 15 Q. NO. 491 TO 525)

THE INDIAN CONTRACT ACT, 1872 (PAPER – 03 Q. NO. 71 TO 105)

MADHYA PARDESH LOWER JUDICIAL SERVICES 2019-2

THE CODE OF CRIMINAL PROCEDURE, 1973 (PAPER – 18 Q. NO. 681 TO 720)

THE CODE OF CIVIL PROCEDURE, 1908 (PAPER – 13 Q. NO. 481 TO 520)

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DELHI LOWER JUDICIAL SERVICES 2019

THE LIMITATION ACT, 1963 (PAPER 03 Q. NO. 81 TO 120)

The Hindu Marriage Act, 1955 (Paper 02: Q. 26 TO 50)

HIMACHAL PARDESH LOWER JUDICIAL SERVICES 2013

THE INDIAN EVIDENCE ACT, 1872 (PAPER – 01 Q. NO. 01 TO 40)

THE ARBITRATION AND CONCILIATION ACT, 1996 (PAPER 04 Q. NO. 91 TO 116)

THE MAHARASHTRA RENT CONTROL ACT, 1999 (PAPER 01 Q. NO. 1 TO 15)

MADHYA PRADESH LOWER JUDICIAL SERVICES 2018(2)

THE SPECIFIC RELIEF ACT, 1963 (PAPER – 04 Q. NO. 106 TO 140)

THE INDIAN CONTRACT ACT, 1872 (PAPER – 13 Q. NO. 421 TO 455)

THE LAW OF TORTS (PAPER 01 Q. NO. 1 TO 45)

AIBE-XIV-2019 (BCI-SEPT-2019-SET-D) (ALL INDIA BAR EXAM 2019)

THE INDIAN CONTRACT ACT, 1872 (PAPER – 10 Q. NO. 316 TO 350)

THE CONSTITUTION OF INDIA, 1949 (PAPER – 13 Q. NO. 421 TO 455)

THE LIMITATION ACT, 1963 (PAPER 05 Q. NO. 161 TO 200)

HIMACHAL PARDESH LOWER JUDICIAL SERVICES 2007-1

DELHI LOWER JUDICIARY 2010

CLAT 2013

THE CODE OF CRIMINAL PROCEDURE, 1973 (PAPER – 22 Q. NO. 841 TO 870)

THE CODE OF CRIMINAL PROCEDURE, 1973 (PAPER – 11 Q. NO. 401 TO 440)

THE LAW OF TORTS (PAPER 03 Q. NO. 91 TO 135)

THE SPECIFIC RELIEF ACT, 1963 (PAPER – 02 Q. NO. 36 TO 70)

THE CODE OF CIVIL PROCEDURE, 1908 (PAPER – 18 Q. NO. 681 TO 720)

HARYANA LOWER JUDICIAL SERVICES 2018

THE HIMACHAL PRADESH URBAN RENT CONTROL ACT, 1987 (PAPER 01 Q. NO. 1 TO 30)

THE CONSTITUTION OF INDIA, 1949 (PAPER – 18 Q. NO. 596 TO 623)

HARYANA LOWER JUDICIAL SERVICES 2021