M/S Moser Baer Photo Voltaic Ltd vs M/S Photon Energy Systems Ltd.& Ors

The Supreme Court addressed the issue of whether a criminal complaint under Sections 138/141/142 of the Negotiable Instruments Act, 1881 can be sustained when the cheque amount exceeds the legally enforceable debt. The Court held that the dismissal of the complaint was erroneous as the appellant had issued a demand for a lesser amount after settlement discussions. The parties reached an amicable settlement, agreeing on a total outstanding amount of Rs.1,80,00,000/- to be paid in instalments, and the complaint will be quashed upon full payment by March 2017.