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Under Section 138, dishonour of a cheque for insufficiency of funds is punishable with imprisonment up to:
AOne year only
BSix months, or fine equal to the cheque amount
CTwo years, or fine up to twice the cheque amount, or both
DThree years and fine
Answer & Solution
Correct answer: C. Two years, or fine up to twice the cheque amount, or both
Section 138 makes such dishonour an offence punishable with imprisonment up to two years, or fine up to twice the cheque amount, or both.
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