When a drawer draws a cheque without keeping sufficient balance and if the cheque is dishonored for insufficient funds, the drawer is punishable with and imprisonment which may extend to 1 year and or a fine.

Section 138 of the Negotiable Instruments Act, 1881 in India, deals with the dishonor of cheques due to insufficient funds.

As per this section, if a cheque is dishonored due to insufficient funds in the account or any other reason, the drawer of the cheque (the person who issues the cheque) may be liable for punishment.

If the drawer of the cheque has issued the cheque without sufficient balance in the account, and the cheque is dishonored due to insufficient funds, the drawer may be punishable with imprisonment for a term which may extend to two years, or with a fine which may extend to twice the amount of the cheque, or with both.