M/S INDUS AIRWAYS PVT. LTD vs M/S MAGNUM AVIATION PVT LTD

The Supreme Court held that post-dated cheques issued as advance payment for purchase orders can be considered in discharge of a legally enforceable debt under Section 138 of the Negotiable Instruments Act, 1881. The Court affirmed the Delhi High Court's ruling that dishonour of such cheques constitutes an offence, emphasizing that the liability arises at the time of issuing the cheque. The appeal was dismissed, upholding the High Court's decision to restore the summons issued by the Additional Chief Metropolitan Magistrate.