Dishonour of Cheque
Dishonoring a cheque, according to Section 138 of the Act, is a criminal offence punishable by up to two years in prison, a monetary penalty, or both. If the payee chooses to proceed legally, the drawer should be offered the option of promptly returning the cheque amount.
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Negotiable Instruments Act – Ingredients of the Offence Under Section 138
The ingredients of the offence under Section 138 of the Negotiable Instruments are as under: (i) The drawing of a cheque by person on an account maintained by him with the banker for…