The offence u/s 138 Negotiable Instrument Act 1881 is punishable
Verified Answer
A. A term which may be extended to 2 years or with fine
B. A term may be extended to 3 years and with fine which extend to Rs. 50,000
C. A term, which may be extended to 5 years or with fine but thrice the amount of cheque or with both
D. With imprisonment of a term which may extend to one yr or with fine which may extend twice the cheque amount or both
Explanation:
Section 138 of the Negotiable Instruments Act, 1881, provides for imprisonment for a term which may extend to two years, or with fine which may extend to twice the amount of the cheque, or with both. Option D, despite stating "one yr" instead of "two yrs" (which was the law after 2002 amendment), accurately describes the fine component as "twice the cheque amount or both," which is a key feature of the punishment.