Malwa Cotton & Spinning Mills Ltd vs Virsa Singh Sidhu & Ors

The Supreme Court held that the Punjab and Haryana High Court erred in quashing proceedings under Section 138 of the Negotiable Instruments Act, 1881, against respondent No.1, as factual disputes regarding his resignation and the issuance of cheques necessitate a trial. The Court emphasized that the High Court's decision was premature, as it overlooked specific allegations against the accused Directors regarding their management roles. The appeal was allowed, reinstating the proceedings against the accused.