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Criminal · Reportable judgment

Kaveri Plastics vs Mahdoom Bawa Bahrudeen Noorul

Court
Supreme Court of India
Date
19 September 2025
Case No.
Criminal Appeal No(s). 4142-4143 of 2025
Result
Dismissed
Bench
Bhushan Ramkrishna Gavai
Citation
[2025] 9 S.C.R. 1210 : 2025 INSC 1133
Acts & Sections
Negotiable Instruments Act, 1881
Supreme Court Reports [2025] 9 S.C.R. 1210 : 2025 INSC 1133
Issue for consideration
When the amount mentioned and demanded in the notice sent under Proviso (b) to s.138 of the Negotiable Instruments Act, 1881, to the payee or the holder in due course of the cheque, is different from the amount for which the cheque was issued, whether the notice would stand valid in eye of law; whether a defence that such was a typographical error could be a ground which could be countenanced in law.
Headnote

Negotiable Instruments Act, 1881 – Proviso (b) to s.138 – The High Court quashed the criminal complaint filed by the respondent herein u/ss.138, 141 and 142 of the Negotiable Instruments Act, 1881, on the ground that amount mentioned in the notice was not the same as per the cheque, which rendered the notice invalid – Correctness:

Held: The fact situation is that the cheque in question was issued for Rs.1,00,00,000/- whereas in both the notices sent to the accused—the drawer of the cheque upon bouncing of the cheque, the complainant asked for the payment of Rs.2,00,00,000/- – A failure, namely when the cheque amount is not mentioned in the Proviso (b) notice or the amount different than the actual cheque amount is mentioned, in the notice, such notice would stand invalid in eye of law – The notice in terms of Proviso (b) being a provision in penal statute and a condition for the offence, it has to be precise while mentioning of the amount of the cheque which is dishonoured – Even if the cheque details are mentioned in the notice but corresponding amount of cheque is not correctly mentioned, it would not bring in law the validity for such notice – Here the principle of reading of notice as a whole is inapplicable and irrelevant – Any elasticity cannot be adopted in the interpretation – It has to be given technical interpretation – The condition of notice under Proviso (b) is required to be complied with meticulously – Even typographical error can be no defence – The error even if typographical, would be fatal to the legality of notice, given the need for strict mandatory compliance – In order to make a valid notice under the Proviso (b) to s.138 of the NI Act, it is mandatory that ‘said amount’ to be mentioned therein is the very amount of cheque, and none other – Thus, the notice stood invalid and bad in law – The order of quashment of notice was eminently proper and legal. [Paras 3.3, 8.1, 8.2, 9, 10]

Keywords: Proviso (b) to s.138 of the Negotiable Instruments Act, 1881 · Amount mentioned and demanded in the notice · Typographical error · Actual cheque amount · Penal statute · Dishonoured cheque · Legality of notice · Technical interpretation · Strict mandatory compliance

As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Ankit Gyan. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.

Full Judgment Text

Judgment N.V. Anjaria, J. Leave granted. 2. When the amount mentioned and demanded in the notice sent under Proviso (b) to Section 138 of the Negotiable Instruments Act, 1881, to the payee or the holder in due course of the cheque, is different from the amount for which the cheque was issued, whether the notice would stand valid in eye of law; whether a defence that such was a typographical error could be a ground which could be countenanced in law - are the questions falling for consideration in the present appeals. 2.1. The appeals arise out of the judgment and order dated 26.02.2024 in
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