SABITHA RAMAMURTHY vs R.B.S.CHANNABASAVARADHYA

The Supreme Court upheld the application of Sections 138 and 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 at the time of the offence. The Court clarified that the involvement of directors in the day-to-day affairs of the company is a matter for trial, and the High Court's dismissal of the appellants' quashing application was justified. Consequently, the appeals were dismissed, maintaining the proceedings against the appellants.