SUDHIR KUMAR BHALLA vs JAGDISH CHAND

The Supreme Court held that the dishonor of cheques due to 'Exceed Arrangement' constitutes an offense under Section 138 of the Negotiable Instruments Act, 1881. The Court clarified that the statutory notice must be properly served, and failure to accept the notice does not absolve the drawer of liability. The appeals were allowed, and the earlier judgments of the High Court were set aside, reinstating the complaints filed under Section 138 and Section 420 IPC.