M/S. Indo Automobiles vs M/S. Jai Durga Enterprises & Ors

The Supreme Court held that the High Court erred in quashing proceedings under Section 138 of the Negotiable Instruments Act, 1881, on the basis of postal endorsement. The Court emphasized that once a notice is sent to the correct address via registered post, it is presumed to be served, as established in K. Bhaskaran vs. Sankaran Vaidhyan Balan and V. Raja Kumari vs. P. Subbarama Naidu. The Court restored the proceedings, allowing the appeal and clarifying that postal endorsements will be considered at trial based on the case's background facts.