BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Two years
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One year
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Three years
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Five years
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Detailed explanation-1: -After the amendment of 2002 the imprisonment that may be imposed may extend to two years, while fine may extend to twice the amount of cheque. However, the trial is conducted in summary way, then Magistrate can pass sentence of imprisonment not exceeding one year and amount of fine exceeding Rs. 5, 000/.
Detailed explanation-2: -The punishment provided for commission of offence under Section 138 of the N.I Act is imprisonment for a term which may extend to 2 years or with fine, which may extend to twice the amount of the cheque or with both.
Detailed explanation-3: -While computing the limitation period of 30 days prescribed under Section 138(b) N.I. Act for issuance of a valid legal notice, the day on which intimation is received by the complainant from the bank that the cheque in question has been returned unpaid has to be excluded.
Detailed explanation-4: -According to Section 138 of the Act, the dishonour of cheque is a criminal offence and is punishable by imprisonment up to two years or with monetary penalty or with both. If payee decides to proceed legally, then the drawer should be given a chance of repaying the cheque amount immediately.
Detailed explanation-5: -It has to be filed only before High Court within sixty days from the date of receipt of certified copies.