New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    Dishonour of cheque for insufficiency of funds etc. in

    the account related to:
    A Section 137 of the Act Correct Answer Incorrect Answer
    B Section 138 of the Act Correct Answer Incorrect Answer
    C Section 139 of the Act Correct Answer Incorrect Answer
    D Section 141 of the Act. Correct Answer Incorrect Answer

    Solution

    As per Negotiable Instruments Act, 1881- S. 138. Dishonour of cheque for insufficiency, etc., of funds in the account .—Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provision of this Act, be punished with imprisonment for a term which may be extended to two years, or with fine which may extend to twice the amount of the cheque, or with both:

    Practice Next