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Generate professional replies to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Step 1 – Issue Identification & Review
The AI analyses your query, notice, order, or uploaded documents and identifies the key issues involved.
• Review the issues identified by the AI
• Add, edit, remove, or refine issues as required
Step 2 – Draft Generation
Once you approve the issues, the AI performs issue-wise legal research and prepares a structured draft response.
• Relevant statutory provisions
• Judicial precedents and Supreme Court, High Court and other citations
• Issue-wise legal analysis
• Practical arguments and supporting content
• Professionally structured draft ready for further review. 
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Issues: Whether a complaint under Section 138 of the Negotiable Instruments Act, 1881 filed on behalf of a company was maintainable when the authority of the person prosecuting the complaint was not proved.
Analysis: A company can act only through an authorised human agency. Where a complaint is instituted on its behalf, the person prosecuting it must have authority derived from the board, the articles, or some other valid source of empowerment. The Court relied on the settled position that the question of authority is material and not a mere technicality in company litigation. It also noted that if authority is disputed, the complainant may be required to prove it, but in the present case the alleged power of attorney did not establish that the signatory had authority to file the complaint under Section 138, nor was there proof that the person executing it was competent to do so.
Conclusion: The complaint was not shown to have been filed and prosecuted by an authorised person and was therefore not maintainable. The acquittal was sustained.
Ratio Decidendi: A company prosecution under Section 138 of the Negotiable Instruments Act, 1881 is maintainable only when the complaint is instituted through a person shown to be duly authorised to act for the company.