C.M.D HARYANA FINANCIAL CORPN. vs M/S VCS ENTERPRISES LTD. & OTHERS.

The Supreme Court ruled that the provisions of Section 138 of the Negotiable Instruments Act, 1881, impose a statutory obligation on the drawer of a cheque to ensure that sufficient funds are available in the account at the time of presentation. The Court established that a notice of demand must be served within 30 days of the cheque being returned unpaid, and failure to do so results in the dismissal of the complaint. The appeal was allowed, and the conviction under Section 138 was upheld, emphasizing the importance of compliance with statutory requirements.