M/S Indus Airways Pvt. Ltd And Ors vs M/S Magnum Aviation Pvt Ltd And Anr

The Supreme Court held that post-dated cheques issued as advance payment for purchase orders can constitute a legally enforceable debt under Section 138 of the Negotiable Instruments Act, 1881. The Court affirmed that the dishonour of such cheques due to stopped payment amounts to an offence under the Act. The Delhi High Court's decision to restore the summons issued by the Additional Chief Metropolitan Magistrate was upheld, confirming the liability of the purchasers despite their cancellation of the purchase orders.