R. VIJAYAN vs BABY

The Supreme Court held that under Section 138 of the Negotiable Instruments Act, 1881, a cheque dishonoured due to insufficient funds constitutes an offence, and the burden of proof for service of notice lies with the complainant. The Court ruled that the High Court erred in not restoring the compensation awarded by the Magistrate, emphasizing that Sections 29 and 357 of the Code of Criminal Procedure should be harmoniously interpreted to allow for compensation in addition to a fine. The Court restored the direction for payment of Rs.20,000 as compensation to the appellant, thereby reversing the High Court's decision.