Suryalakshmi Cotton Mills Ltd vs Rajvir Industries Ltd. & Ors

The Supreme Court addressed the issue of misuse of signed blank cheques, emphasizing that the essential ingredients of criminal breach of trust under Section 405 IPC must be established. The Court held that the mere handing over of signed blank cheques does not automatically imply criminal intent or breach of trust, particularly when the parties had a prior understanding regarding their use. The appeal was dismissed, affirming the lower court's decision that there was insufficient evidence to support the allegations of fraud and misuse.