UNITED INDIA INSURANCE CO. LTD. vs M/S. RIGA SUGAR CO. LTD.

The Supreme Court ruled that the provisions of Section 138 of the Negotiable Instruments Act, 1881, impose a strict liability on the drawer of a cheque in case of dishonor due to insufficient funds. The Court held that the complainant must prove that the cheque was presented within the validity period and that a notice was sent to the drawer after dishonor. The appeal was dismissed, affirming the conviction of the accused for cheque dishonor.