Conviction Reversed and Fresh Conviction Ordered Under Section 138 of the Negotiable Instruments Act in Cheque Bounce Case: Supreme Court

The Supreme Court has delivered a landmark judgment clarifying that a cheque, even if dishonored due to "payment stopped by drawer," does not automatically mean the accused committed an offence under Section 138 of the Negotiable Instruments Act. The Court held that the validity of a registered sale deed is not affected by unpaid balance consideration, and similarly, a cheque's dishonor does not imply criminal liability unless the prosecution proves…