STATE OF U.P. vs PINTU @ ULAYATA

The Supreme Court ruled that under Section 138 of the Negotiable Instruments Act, the drawer of a cheque is liable for 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 that the requirement of notice is a mandatory precondition for initiating proceedings under Section 138. The appeal was dismissed, affirming the conviction of the appellant for dishonor of cheque.