RIPUDAMAN SINGH vs BALKRISHNA

The Supreme Court held that the High Court erred in quashing the complaints under Section 138 of the Negotiable Instruments Act, 1881, as the cheques were issued for the payment of balance consideration in a sale agreement. The Court emphasized that the existence of a pending civil suit does not negate the liability under the cheques unless explicitly stated in the agreement. The Court reversed the High Court's decision, reinstating the complaints and allowing the proceedings to continue.