M/S.Shree Daneshwari Traders vs Sanjay Jain

The Supreme Court upheld the High Court's decision affirming the acquittal of the respondent-accused under Section 138 of the Negotiable Instruments Act. The Court found that the appellant-complainant failed to establish that the cheques were issued for a legally enforceable debt, as the respondent successfully demonstrated that the cheques were given as security for goods supplied, with payments made in cash. The Court reiterated that the presumption under Section 139 of the Act does not apply when the nature of the transaction is inconsistent with the claim of a legally enforceable debt.