In Brief
Ripudaman Singh and Balkrishna entered into an agreement for the sale of agricultural land, with payment made by cheques that later bounced due to insufficient funds. The respondents sought discharge from the cheque dishonour complaint. The High Court had quashed the proceedings, holding no legally enforceable debt existed. The Supreme Court disagreed, holding that cheques issued for payment of balance consideration in a land sale create enforceable debt under Section 138 of the Negotiable Instruments Act, 1881. The Court allowed the appeals, setting aside the High Court's order, and clarified it expressed no view on the trial merits.
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