MAHANAGAR TELEPHONE NIGAM LTD vs CANARA BANK

The Supreme Court addressed the dispute between MTNL and Canara Bank regarding the cancellation of bonds worth Rs. 80 crores issued by MTNL. The Court held that Canara Bank, as the holder in due course, is entitled to have the bonds registered in its name and receive accrued interest, despite MTNL's claims of non-payment by CANFINA. The Court emphasized the principles of negotiable instruments under the Indian Contract Act, 1872, and ruled in favor of Canara Bank, directing MTNL to register the bonds and pay the interest due.