Pulsive Technologies P.Ltd vs State Of Gujarat & Ors

The Supreme Court held that a cheque returned due to 'stop payment' instructions constitutes an offence under Section 138 of the Negotiable Instruments Act, thereby reversing the High Court's decision which quashed the complaint on this basis. The Court emphasized that the High Court misinterpreted the applicability of Section 138, which is triggered not only by insufficient funds but also by the issuance of stop payment instructions. Consequently, the Supreme Court reinstated the complaint filed by the appellant against the accused for the dishonored cheque.