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

The Supreme Court held that Section 138 of the Negotiable Instruments Act, 1881 applies even when a post-dated cheque is stopped by the issuer before its due date. The Court clarified that the mere act of stopping payment does not exempt the issuer from liability under Section 138, emphasizing the need to uphold the integrity of negotiable instruments. The Court overturned the lower courts' decisions, which had misinterpreted prior judgments, and allowed the appeal, thereby reinstating the complaint against the respondent.