In India, the maximum fine for a cheque bounce (dishonour of cheque) case is governed by Section 138 of the Negotiable Instruments Act, 1881. The penalties for cheque bounce are as follows: Imprisonment: The person who dishonours a cheque can be punished with imprisonment for a term which may extend to two years. Fine: The court may impose a fine that may extend to twice the amount of the cheque. For example, if the cheque amount is INR 50,000, the fine can be up to INR 100,000 (double the cheque amount). In addition to the fine, the court may also direct the offender to pay the cheque amount to the complainant if the cheque is dishonoured due to insufficient funds or any other reason within the prescribed time frame for payment. Thus, the maximum fine for cheque bounce cases can be twice the amount of the cheque, in addition to possible imprisonment.
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