The Supreme Court on Friday refused to revive a cheque-bounce case filed by Kaveri Plastics, firmly holding that a statutory demand notice must mention the exact cheque amount-no more, no less. The bench of Chief Justice B.R. Gavai and Justice N.V. Anjaria dismissed the company’s appeal, saying even a “typographical error” cannot rescue a notice that demands a different figure.
Background
Kaveri Plastics had entered into a 2012 land-sale understanding with Nafto Gaz India Pvt. Ltd. When a cheque for ₹1 crore bounced for “funds insufficient,” the company sent two legal notices seeking payment of ₹2 crore instead. The respondent challenged the complaint in the Delhi High Court, arguing that the mismatch between the cheque amount and the notice violated Section 138 of the Negotiable Instruments Act (NI Act). The High Court agreed and quashed the case in February 2024, prompting this appeal.
Court’s Observations
Justice Anjaria recounted that Section 138(b) requires the payee to “make a demand for the payment of the said amount of money”-meaning the cheque amount itself. Citing earlier rulings like Suman Sethi v. Ajay K. Churiwal, the bench stressed that a penal statute demands strict compliance.
“The notice has to be precise,” the bench observed. “Even a typographical error can be no defence when the law mandates that the ‘said amount’ must match the cheque.”
The judges noted that Kaveri Plastics repeated the higher figure in two separate notices, undermining any plea of mere oversight. “Elastic interpretation cannot be adopted,” the court said, calling the NI Act a “technical offence” that leaves no room for ambiguity.
Decision
Finding no merit in the appeal, the Supreme Court upheld the Delhi High Court’s order and dismissed Kaveri Plastics’ complaint. With this, the respondent stands free of the cheque-bounce prosecution. The judgment underscores that anyone issuing a legal notice for a dishonoured cheque must demand exactly the cheque amount-nothing more-if they wish to sustain criminal proceedings.
Case Title: Kaveri Plastics vs. Mahdoom Bawa Bahrudeen Noorul – Cheque Bounce Notice Amount Mismatch
Date of Judgment: 19 September 2025
