In Brief
A cheque for Rs. 4 lakhs was allegedly issued as consideration for an oral sale of property. The complaint alleged dishonour of this cheque. The Supreme Court held that proof of an existing debt or liability is essential for conviction under Section 138 of the Negotiable Instruments Act, 1881. Since no conveyance was executed and no debt was proven, the conviction could not be sustained. The Court allowed the appeal, overruled the High Court's verdict, and upheld the trial court's judgment acquitting the appellant.
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