Punjab & Sindh Bank vs Vinkar Sahakari Bank Ltd And Ors

The Supreme Court held that a Pay Order can be classified as a cheque under Section 138 of the Negotiable Instruments Act, 1881, provided it meets the definition of a cheque as outlined in Section 6 of the Act. The Court found that the High Court erred in quashing the complaint on the grounds that the Pay Order was not a cheque and that the complainant was not a holder in due course. The appeal was allowed, reinstating the complaint against the drawer bank and its officials.