M/S Laxmi Dyechem vs State Of Gujarat & Ors

The Supreme Court held that the dishonour of a cheque due to mismatched signatures does not fall under the penal provisions of Section 138 of the Negotiable Instruments Act, 1881. The Court clarified that Section 138 is applicable only when a cheque is dishonoured for insufficient funds or exceeding the arrangement with the bank. Consequently, the High Court's orders quashing the complaints were upheld, establishing that such dishonour does not constitute an offence under Section 138.