Rekha Sharad Ushir vs Saptashrungi Mahila Nagari Sahkari ...

The Supreme Court examined the validity of a criminal case under Section 138 of the Negotiable Instruments Act, arising from the dishonour of a cheque issued as security for a loan. The appellant had issued security cheques which were dishonoured, leading to criminal proceedings. The Court noted that the appellant had paid the cheque amount prior to the trial, raising questions about the continuance of the criminal case. The judgment discusses the principles of compounding offences and the effect of full payment on criminal proceedings under Section 138 NI Act.