1. Background of the Case

• Prem Raj, the appellant, had issued a cheque to Poonamma Menon, which was dishonored. Subsequently, a complaint under Section 138 of the Negotiable Instruments Act, 1881 (NI Act), was filed against him.
• Concurrently, Prem Raj had already filed a civil suit where the cheque was declared a security cheque by the Additional District Munsif, Irinjalakuda.

2. Procedural History

• The Trial Court convicted Prem Raj under Section 138 of the NI Act.
• The First Appellate Court and the High Court of Kerala upheld this conviction, dismissing Prem Raj's appeal.

3. Supreme Court's Analysis

• The Supreme Court emphasized that decisions of civil courts are binding on criminal courts when it comes to matters of sentence or damages.
• The Court referred to precedents, including M.S. Sheriff vs. State of Madras, which highlighted the difference in the burden of proof in civil and criminal cases and the precedence of civil judgments over criminal ones in specific contexts.

4. Decision

• The Supreme Court quashed the conviction and criminal proceedings against Prem Raj, holding that the cheque in question, as per the civil court’s decree, was a security cheque and not enforceable under Section 138 of the NI Act.
• The Court ordered that the damages imposed by the lower courts be returned to Prem Raj.

5. Conclusion

• The judgment reinforces the principle that criminal proceedings cannot sustain themselves when a civil court has already decreed the subject matter in favor of the accused, particularly when the matter concerns the enforceability of a cheque.