KRISHNA JANARDHAN BHAT vs DATTATRAYA G. HEGDE

The Supreme Court addressed the issue of dishonor of a cheque under Section 138 of the Negotiable Instruments Act, 1881, holding that the appellant's defense of cancellation of the power of attorney was insufficient to absolve him of liability. The Court emphasized that the issuance of a cheque constitutes a legal obligation, and the appellant's claim of collusion with the power of attorney holder did not negate the debt owed. The Court upheld the conviction and sentence imposed by the Trial Court, affirming the principle that a cheque issued in discharge of a liability cannot be contested on grounds of prior cancellation of authority.