In Brief
Kaveri Plastics issued a cheque for Rs. 1 crore that bounced due to insufficient funds. The company then sent two demand notices under Section 138 of the Negotiable Instruments Act asking for Rs. 2 crores instead. When the drawer challenged the complaint, arguing the notice discrepancy was a typographical error, the High Court quashed it. The Supreme Court upheld this decision, holding that a demand notice under Section 138 must specify the exact cheque amount. Even if other cheque details are mentioned, an incorrect amount makes the notice invalid. Since this notice is a mandatory condition in a penal statute, strict compliance applies—no leniency for typographical errors. The Court dismissed the appeal.
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