Supreme Court's Verdict on Cheque Dishonour Notice: A Legal Perspective

The Supreme Court ruled that any mismatch between the amount on a dishonoured cheque and its demand notice is detrimental to a case under the Negotiable Instruments Act. This decision invalidates proceedings that do not strictly align the cheque amount with the notice, emphasizing rigorous compliance with Section 138.

The Supreme Court has delivered a crucial verdict impacting cases under the Negotiable Instruments (NI) Act. On Friday, the court declared that any discrepancy between the amount written on a dishonoured cheque and the subsequent demand notice is detrimental to the prosecution of such cases under Section 138.

A bench comprising Chief Justice B R Gavai and Justice N V Anjaria highlighted the necessity for the demand notice to mandate the exact amount specified in the dishonoured cheque. The Supreme Court stressed that the failure to comply strictly with this requirement results in the proceedings being deemed invalid.

This decision arose from appeals challenging a Delhi High Court's order, which quashed a criminal complaint due to a mismatch between the cheque amount and the amount specified in the notice. The apex court affirmed the requirement for precise compliance in the interest of legal accuracy and dismissed the appeals.

(With inputs from agencies.)