The Karnataka High Court has ruled that the fine imposed in a cheque bounce case cannot exceed twice the amount of the bounced cheque. This ruling impacts cases filed under Section 138 of the Negotiable Instruments Act, 1881, which addresses the dishonor of cheques.

Section 138 of the NI Act, 1881, was established to ensure the credibility of checks as a financial tool. According to this provision, the dishonor of a check is a criminal offense that can be punished with imprisonment for up to two years, a fine of up to twice the amount of the check, or both.

In related news, the Delhi High Court has ordered Bollywood actor Rajpal Naurang Yadav to surrender by February 4, 2026, to serve a six-month sentence for multiple check dishonor cases. The trial court convicted Yadav and his wife on May 29, 2024, sentencing them to six months' imprisonment in seven interconnected cases, along with compensation liabilities of Rs. 1.35 crores per case.