NEPC MICON LTD. vs MAGMA LEASING LTD.

The Supreme Court held that the dishonor of a cheque due to the account being closed does not constitute an offense under Section 138 of the Negotiable Instruments Act, 1881. The Court emphasized that Section 138 only applies when the cheque is dishonored due to insufficient funds or exceeding the arrangement with the bank. The appeal was allowed, quashing the proceedings initiated against the appellants, as the complaint did not disclose an offense under the specified section.