Sec 138 and 139 under NI act
Sec 138 and 139 under NI act Section 138: Dishonour of Cheque for Insufficiency, etc., of Funds This section deals with the criminal offense of cheque dishonour (bouncing). If a cheque is returned unpaid due to insufficient funds in the drawer's account or for other specified reasons, the drawer can face legal action. Punishment for Section 138: If a person is found guilty of an offence under Section 138, they can be punished with: Imprisonment: A term of imprisonment which may extend to two years, or Fine: A fine which may extend to twice the amount of the cheque, or Both: Both imprisonment and fine. Key points related to Section 138: Criminal Offence: Cheque bounce under Section 138 is a criminal offense, providing a strong deterrent. Conditions for Offence: For an offence to be made out, certain conditions must be met: The cheque must have been issued for the discharge of a legally enforceable debt or liability. The cheque must be presented to the bank within its period of valid...