State Of U.P vs M/S Lakshmi Sugar & Oil Mills Ltd.& Ors

The Supreme Court ruled that the provisions of Section 138 of the Negotiable Instruments Act, 1881, require the drawer of a cheque to ensure that sufficient funds are available in the account at the time of presentation. The Court emphasized that the dishonor of a cheque due to insufficient funds constitutes an offense under this section, and the complainant must prove the existence of a legally enforceable debt. The appeal was dismissed, affirming the conviction of the accused for the offense under Section 138.