M/S Mohinder Singh & Co vs Board Of Trustees Of The Port Of Bombay

The Supreme Court ruled that under Section 138 of the Negotiable Instruments Act, the drawer of a cheque is liable for criminal prosecution if the cheque is returned due to insufficient funds, provided that the payee has issued a notice within the stipulated time frame. The Court emphasized the necessity of proving the legal demand and the failure to make payment within 15 days of receiving the notice. The appeal was dismissed, affirming the conviction of the appellant under Section 138.