Disputed “Debt or Liability” Is a Matter for Trial, Not Quashing

Sri Om Sales Vs Abhay Kumar (Supreme Court of India) Cheque Bounce Case Revived — Supreme Court Says High Court Cannot Test “Debt or Liability” at Quash Stage Supreme Court allowed the appeal filed by M/s Sri Om Sales and set aside the Patna High Court order which had quashed proceedings u/s 138 of the Negotiable Instruments Act, 1881. The complaint alleged issuance of a cheque of ₹20 lakh towards goods supplied, dishonour due to insufficiency of funds, service of statutory demand notice, and failure to make payment within the prescribed period. The High Court, while exercising powers ...