I.C.D.S. LTD. vs BEENA SHABEER

The Supreme Court addressed the maintainability of a proceeding under Section 138 of the Negotiable Instruments Act, 1881, concerning a guarantor. The Court held that a cheque issued as security does not constitute a discharge of a debt or liability under Section 138, affirming the High Court's decision that no complaint lies in such cases. The ruling clarified that the issuance of a cheque must be for immediate payment of money to invoke the provisions of Section 138.