In Kaveri Plastics v. Mahdoom Bawa Bahruden Noorul [2025 INSC 1133], the Supreme Court has reiterated a mandatory requirement for a valid complaint under Section 138 of the Negotiable Instruments Act, 1881. For the complaint to be maintainable, the statutory demand notice sent to the drawer of the cheque must demand the exact amount covered by the dishonoured cheque.
The Court affirmed the long-standing principle established in Suman Sethi v. Ajay K. Churiwal & Anr. [AIR 2000 SC 828], which holds that the demand in the notice must be for the cheque amount alone. If the notice includes additional claims, such as interest or other costs, these must be mentioned separately and be clearly severable from the principal demand.
If the total amount demanded in the notice is different from the cheque amount (for example, by improperly including interest), the notice is considered invalid, and any subsequent complaint filed on its basis is not maintainable.
