New Delhi, Oct. 1 -- The Supreme Court has held that a statutory demand notice under the Negotiable Instruments Act, 1881 cannot be treated as invalid merely because it was received by a family member of the cheque drawer, if it was dispatched by registered post to the drawer's correct address.

A bench of Justices Ahsanuddin Amanullah and Manmohan set aside a Kerala High Court judgment that had overturned a cheque-bounce conviction solely because the notice was received by the drawer's mother instead of him personally.

Notice To Correct Address Creates Presumption Of Service

The Court held that dispatch of the notice to the drawer's correct address creates a rebuttable presumption of service. The drawer must then establish that the add...