Sampelly Satyanarayan Rao vs Indian Renewable Energy Development ...

The Supreme Court held that the dishonour of post-dated cheques given as security for a loan falls under Section 138 of the Negotiable Instruments Act, 1881, as they are issued for a debt in present but payable in future. The Court affirmed the High Court's decision that the cheques were validly issued in connection with an existing loan agreement, thus rejecting the appellant's argument that no liability existed at the time of issuance. The appeal was dismissed, upholding the validity of the complaints against the appellant.