GENERAL SECRETARY, H.S.E. UNION, BHILAI vs MANAGING DIRECTOR, BHILAI STEEL PLANT

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 emphasized that the notice of dishonor must be served within 30 days of the receipt of information regarding the dishonor, and failure to do so would bar the complaint. The judgment reinforced the need for compliance with procedural requirements to maintain the integrity of financial transactions.