HMT WATCHES LTD. vs M.A. ABIDA

The Supreme Court held that the High Court erred in quashing criminal complaints under Section 138 of the Negotiable Instruments Act, 1881, as the respondent's claim that the cheques were issued merely as security did not absolve her of liability. The Court emphasized that the essential ingredients of the offence under Section 138 were present, and the High Court's decision was not justified based on the factual assertions made by the respondent. Consequently, the appeals were allowed, and the High Court's order was set aside, reinstating the criminal complaints.