In Brief
The appellant challenged his prosecution under Section 138 of the Negotiable Instruments Act for dishonoured cheques, claiming they were security instruments for share buyback rather than payment for a legally enforceable debt. The Supreme Court dismissed the appeal, affirming the High Court's refusal to quash proceedings. The Court held that at pre-trial stages involving factual disputes, a quashing court cannot conduct detailed inquiry into evidence. The statutory presumption of debt arising from a dishonoured cheque must be respected, and only the trial court can weigh evidence to determine truth. The accused retains full opportunity to present defence at trial.
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