C.KESHAVAMURTHY vs H.K.ABDUL ZABBAR

The Supreme Court upheld the conviction under Section 138 of the Negotiable Instruments Act, 1881, for dishonor of cheques issued by the respondent to the appellant. The Court found that the respondent's defense, claiming the cheques were issued under an agreement of sale which had not been fulfilled, was untenable as the cheques in question were issued after a notice to not clear them. The Court confirmed the modified sentence of three months' simple imprisonment and a fine of Rs. 5,000, along with compensation of Rs. 4,50,000 to the appellant.