Sabitha Ramamurthy & Anr vs R.B.S. Channabasavaradhya

The Supreme Court upheld the applicability of Section 138 and Section 141 of the Negotiable Instruments Act, affirming that directors of a company can be held liable for cheque dishonor if they were in charge of the company's affairs at the time of the offence. The Court found that the High Court's dismissal of the appellants' application to quash the proceedings was justified, as there was prima facie evidence of their involvement in the company's operations. Consequently, the appeals were dismissed, maintaining the lower court's ruling.