KISHANLAL SAHU vs RAMESH CHANDRA AGRAWAL

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 in discharge of a legally enforceable debt. The Court emphasized that mere issuance of a cheque does not create a presumption of debt unless the complainant proves the existence of such a debt. The appeal was dismissed, affirming the lower court's decision that the cheque was issued without any underlying liability.