A.P.S.R.T.C. vs THOKALA LAXMI .

The Supreme Court ruled that the provisions of Section 138 of the Negotiable Instruments Act, 1881, require a clear and unambiguous notice to be served upon the drawer of the cheque before initiating proceedings. The Court emphasized that the notice must specify the amount due and the reason for the dishonor of the cheque. The appeal was allowed, and the proceedings against the appellant were quashed due to non-compliance with the notice requirement.