Goaplast Pvt. Ltd vs Shri Chico Ursula D'Souza & Anr

The Supreme Court held that the mere act of stopping payment on post-dated cheques does not exempt the issuer from liability under Section 138 of the Negotiable Instruments Act, 1881. The Court clarified that the offense under Section 138 is applicable even if the payment is stopped before the cheques become payable, emphasizing the legislative intent to uphold the credibility of negotiable instruments. The Court overturned the lower courts' decisions, which misinterpreted the law, and allowed the appeal, reinstating the complaint under Section 138.