The Supreme Court, in a ruling, directed the Courts not to impose a fine of more than twice the amount in bounced cheques even if they are taking a lenient view of the accused by not sentencing him imprisonment.
As per Section 138 of the Negotiable Instruments Act, 1881, a person (whose cheque has bounced) shall without prejudice to any other provision of this act, be punished with imprisonment for a term which may extend to one year, or with fine which may extend to twice the amount of the cheque, or with both.