Negotiable Instruments Act, 1881 interprets that if a person in discharge of any legal liability issues a cheque and is dishonoured by his banker and the other ingredients of Section 138 of the Negotiable Instruments Act, 1881, are made out then the same is liable for punishment, which may be imprisonment for a term which may extend to two years or with fine which may extend to twice the amount of the cheque, or with both.

Yes, there are various defenses available to the accused to defend his action and it depends on the particular facts and circumstances of the case.