Hmt Watches Ltd vs M.A. Abida & Anr

The Supreme Court held that the High Court erred in quashing the criminal complaints under Section 138 of the Negotiable Instruments Act, 1881, on the grounds that the cheques were issued as security and not for discharge of liability. The Court emphasized that the essential ingredients of the offence under Section 138 must be established, and the mere assertion of the cheques being security does not negate liability. The appeals were allowed, reinstating the criminal proceedings against the respondent.