EDIT: I hope this makes more clear my answer.
It is known that a modular lattice is distributive if, and only if, its Hasse diagram does not include a diamond lattice. See for example the beginning of Chapter II, Distributive Lattices, of General Lattice Theory, by George A. Gratzer.
Let $\mathcal{S}(M)$ be the modular lattice of submodules of a module $M$. The Correspondence Theorem for submodules says that the lattice $\mathcal{S}(M/N)$ of submodules of a quotient $M/N$ is isomorphic to the lattice {$L\leq M\mid N\leq L$}, i.e. the part of the lattice $\mathcal{S}(M)$ which is above the element $N$.
Notice that if $M$ has composition series, then every submodule and every quotient also has composition series.
Suppose that $\mathcal{S}(M)$ is not distributive. Then we can find a diamond diagram somewhere in this lattice, with a submodule $N$ on the bottom, $L$ on the top and $S,T$ and $U$ in the middle. Therefore in the lattice $\mathcal{S}(M/N)$, if L'=L/N, S'=S/N,T'=T/N and U'=U/N then L'=S'\oplus T'=S'\oplus U'=T'\oplus U'. Now L' also has a composition series, so by the Jordan-Hölder Theorem we must have that two of the three simple modules S', T', U' are isomorphic. Therefore $M$ has a subquotient, namely $L/N$, which is isomorphic to, say, S'\oplus S'.
Conversely, if there exists such subquotient $L/N$ then it is the direct sum of two simple submodules, both isomorphic to a simple module $S$. In fact there is a third submodule, which is isomorphic to {$(x,x)\in S\oplus S\mid x\in S$}. Therefore we have a diamond diagram in $\mathcal{S}(M/N)$, which, again by the Correspondence Theorem also appears in $\mathcal{S}(M)$, between $N$ and $L$. This means that the lattice is not distributive.