STATE TRADING CORP.OF INDIA LTD. vs M/S BISHAN SAROOP RAM KISHAN A.P.LTD — Crl.A. No. 723/2014

Case Summary: State Trading Corp. of India Ltd. v. M/S Bishan Saroop Ram Kishan A.P. Ltd. Crl.A. No. 723/2014 | Supreme Court of India | April 1, 2014 The Supreme Court allowed STC's appeals against the Delhi High Court's February 19, 2009 judgment that had quashed two cheque bounce complaints (under Negotiable Instruments Act §138). STC issued two undated cheques as security for a Rs. 150 crore transaction, which were dishonored with "payment stopped" notes. The High Court had quashed proceedings, holding the cheques were security, not debt discharge. The Supreme Court reversed this, finding questions of whether cheques constituted debt security are factual issues requiring trial evidence and cannot be decided under §482 CrPC. The court set aside the High Court's judgment and remitted the matters to the trial court for decision according to law. This case analysis is maintained by casestatus.in based on publicly available court records.