Birbal vs Haryana State & Ors

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 mandatory and failure to comply with it results in the dismissal of the complaint. The judgment clarified the procedural aspects of filing a complaint under Section 138, reinforcing the need for adherence to statutory requirements.