BABU MEHENDI KHAN @ CHARSI vs STATE OF MAHARASHTRA .

The Supreme Court ruled that the provisions of Section 138 of the Negotiable Instruments Act, 1881, impose a statutory obligation on the drawer of a cheque to ensure that sufficient funds are available in the account for honoring the cheque. The Court established that the mere issuance of a cheque does not create a presumption of liability unless the complainant proves that the cheque was issued in discharge of a legally enforceable debt. The appeal was dismissed, affirming the conviction under Section 138.