Security cheque and stop-payment instructions did not satisfy Section 138's legally enforceable debt requirement.

Section 138 of the Negotiable Instruments Act applies only when a cheque is issued in discharge of an existing, legally enforceable debt or liability. On the facts noted, the evidence showed inconsistencies about the date and circumstances of issuance, the complainant admitted in cross-examination that the cheque was given only as a guarantee, and the defence version of earlier stop-payment instructions was supported. A cheque issued merely as security does not satisfy the statutory ingredient for an offence under Section 138, so the acquittal was sustained and the appeal failed.

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Issues: Whether the cheque was issued towards discharge of a legally enforceable debt or liability so as to attract Section 138 of the Negotiable Instruments Act, 1881.

Analysis: The evidence showed material inconsistencies regarding the date and circumstances of issuance of the cheque. The complainant's own cross-examination admitted that the cheque was issued only as a guarantee, and the record supported the defence that stop payment instructions had been given much earlier. Since Section 138 applies only where the cheque is issued in discharge of an existing debt or other liability, a cheque issued merely as security does not satisfy the statutory ingredient.

Conclusion: The cheque was not issued in discharge of any legally enforceable debt or liability, and the offence under Section 138 was not made out. The acquittal was therefore sustained and the appeal failed.

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