Union Of India & Ors vs M/S Khaziranga Tobacco Products(P)Ltd

The Supreme Court ruled that the provisions of Section 138 of the Negotiable Instruments Act, 1881, require the complainant to establish that the cheque was issued for the discharge of a legally enforceable debt. The Court emphasized that mere issuance of a cheque does not create a presumption of liability unless the debt is proved. The appeal was dismissed, affirming the conviction of the accused for dishonor of cheque under Section 138.