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Dishonour of cheque due to insufficiency of funds

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25 August 2016 Hello, I want to know the punishment for dishonour of cheque due to insufficiency of funds under the negotiable instrument act,1881.

25 August 2016 Dear Vinayak,

Sec 138 of instruments act deals with bouncing of cheques.

Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice. to any other provision of this Act, be punished with 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:

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