Supreme Court overturns conviction under Section 138, stresses need for specific averments

The Supreme Court of India allowed the appeal, overturning the conviction of the appellant under Section 138 of the Negotiable Instruments Act. The court found that there was insufficient evidence of the appellant's involvement in the offense, emphasizing the need for specific averments to establish liability under the Act. Despite the lower courts upholding the conviction, the Supreme Court concluded that the appellant's lack of responsibility for the business conduct and the absence of notice warranted the reversal of the decision.

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The Supreme Court of India's judgment states that the challenge in the appeal is against the Madhya Pradesh High Court's judgment dismissing the revision application of the appellant, who was convicted under Section 138 of the Negotiable Instruments Act. The appellant, a General Manager, received four cheques from a co-accused, which were dishonored. Despite the appellant's claim of not being responsible for the business conduct, the lower courts upheld his conviction. The appellant argued that there was no evidence of his involvement and no notice was given to him. The court referred to previous cases to establish that liability under Section 138 requires specific averments. Ultimately, the court allowed the appeal, stating that the conviction could not be maintained.

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