Legal Analysis: K Ranganayakulu v. State of Telangana & Ors

Citation: 2026 INSC 555 (Reportable)
Court: Supreme Court of India
Bench: A Division Bench comprising Justice Prashant Kumar Mishra and Justice N.V. Anjaria
Date of Decision: May 12, 2026
Nature of Judgment: Criminal Appeal arising out of SLP (Crl.) No. 1915 of 2025 against the conviction under Section 138 of the Negotiable Instruments Act, 1881.

Synopsis of the Judgment

The appellant, the Treasurer of an NGO (TIMES), was convicted under Section 138 of the Negotiable Instruments Act, 1881 (NI Act) for dishonour of a cheque issued on behalf of the NGO. He argued that he was not the “drawer” of the cheque and therefore could not be held vicariously liable. The Supreme Court rejected this contention, holding that by virtue of the Memorandum of Understanding (MOU) entered into with the complainant (APCPDCL/Telangana CPDCL), the appellant was the sole person responsible for all acts and liabilities of the NGO. The MOU did not cast any liability on the Chairman or any other office bearer; it effectively made the appellant the “front face” and the de facto drawer of the cheque. The Court upheld the conviction but modified the sentence from rigorous imprisonment for one year plus fine of Rs. 1.5 crore to only a fine of Rs. 1.5 crore, with a default sentence of one year rigorous imprisonment. The fine was directed to be paid to the complainant within two months.

1. Basic Information of the Judgment

• Case Title: K Ranganayakulu v. State of Telangana & Ors.

• Citation: 2026 INSC 555 (Reportable)

• Criminal Appeal No.: 2472 of 2026 [@ SLP (Crl.) No. 1915 of 2025]

• Bench: Division Bench (Justice Prashant Kumar Mishra and Justice N.V. Anjaria)

• Date of Decision: May 12, 2026

• Court: Supreme Court of India (Criminal Appellate Jurisdiction)

• Impugned Order: 

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