Cref Finance Ltd vs Shree Shanthi Homes Pvt. Ltd.&Anr.;

The Supreme Court held that the High Court's order remitting the matter to the Magistrate for failure to take cognizance before issuing process under Section 138 of the Negotiable Instruments Act, 1881 was unsustainable. The Court emphasized that taking cognizance is a mandatory condition precedent, and the absence of a signed order by the Magistrate did not invalidate the process already issued. The appeal was allowed, and the High Court's order was set aside, reinstating the proceedings initiated by the Magistrate.