BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A person culpable under Section 138 of the Act can be made liable for a punishment that may extend up to 2 years of imprisonment or a fine that may extend up to twice the amount of the cheque in dispute, or both.

Detailed explanation-2: -The Negotiable Instruments Act, 1881 is applicable for the cases of dishonour of cheque. This Act has been amended many times since 1881. 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.

Detailed explanation-3: -What is the limit for cheque bounce case? As per Negotiable Instruments Act, legal notice must be sent within 30 days from the date of cheque bounce. Thereafter within 15+30=45 days from the date of sending the legal notice, case must be filed.

Detailed explanation-4: -In most cheque bouncing cases, a warrant for your arrest is issued if you do not appear before the Court after being summoned. The crime of cheque bouncing is bailable.

Detailed explanation-5: -In a significant judgment, the Supreme Court on Tuesday held that no offence for dishonour of cheque under Section 138 of the Negotiable Instruments Act is made out if the cheque is presented for the full amount without endorsing the part-payment made by the borrower after the issuance of the cheque.