S.K.ALAGH vs STATE OF U.P..

The Supreme Court held that the termination of the dealership by Britannia Industries Ltd. did not absolve the appellant from liability under Section 406 IPC for criminal breach of trust, as the demand drafts were accepted despite the dealership's termination. The Court emphasized that the existence of a civil dispute does not preclude criminal proceedings if a prima facie case is established. The appeal was dismissed, affirming the lower court's decision to proceed with the criminal complaint against the appellant.