Power of attorney holder can maintain a cheque dishonour complaint when affidavit shows knowledge of the transaction.

A complaint under Section 138 of the Negotiable Instruments Act may be filed through a power of attorney holder if the holder has due knowledge of the transaction. At the stage of issuing process, the Magistrate may rely on the complaint, supporting documents and affidavit, and need not first examine the complainant. Where the supporting affidavit states that the holder is conversant with the facts and explains the cheque transaction, the absence of a similar averment in the complaint itself does not render the complaint incompetent. The challenge to maintainability on the ground of the power of attorney holder's competence was rejected.

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Issues: Whether a complaint under Section 138 of the Negotiable Instruments Act, 1881 filed through a power of attorney holder is maintainable when the complaint itself does not contain an express averment that the holder had knowledge of the transaction, but the supporting affidavit does.

Analysis: Filing of a complaint through a power of attorney holder is legally permissible if the holder has due knowledge of the transaction. The complaint may be supported by an affidavit, and at the stage of issuing process the Magistrate can rely on the complaint, supporting documents, and the affidavit without necessarily examining the complainant. The requirement in the governing precedent that the holder must have knowledge of the transaction was found to be satisfied where the supporting affidavit specifically stated that the holder was conversant with the facts and narrated the circumstances of the cheque transaction. On that basis, the absence of a similar averment in the complaint itself did not render the complaint incompetent.

Conclusion: The complaint was held to be maintainable and the challenge to the proceedings on the ground of incompetence of the power of attorney holder was rejected.

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