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        2025 (3) TMI 558 - HC - Indian Laws

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        Authorised representative complaint under Section 138 upheld, with admitted cheques and unrebutted liability defeating revision challenge. A complaint under Section 138 of the Negotiable Instruments Act was held maintainable where it was instituted through an authorised company representative ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                            Authorised representative complaint under Section 138 upheld, with admitted cheques and unrebutted liability defeating revision challenge.

                            A complaint under Section 138 of the Negotiable Instruments Act was held maintainable where it was instituted through an authorised company representative supported by board resolution, further delegation, and Articles of Association permitting such authorisation. On the merits, the cheques were admitted, the business liability was acknowledged in the reply notice, and no reliable evidence rebutted the statutory presumption or proved repayment. The Trial Court and Appellate Court findings were supported by documentary and oral evidence and showed no perversity, so revision interference was unwarranted. The conviction under Section 138 was therefore left undisturbed.




                            Issues: Whether the complaint under Section 138 of the Negotiable Instruments Act was maintainable when instituted through an authorised representative of the company, and whether the concurrent conviction called for interference in revision.

                            Analysis: The complaint was shown to have been instituted pursuant to a board resolution authorising the Regional Manager to initiate proceedings, and a further authorisation empowered the witness to depose after the earlier authorised officer left the company. The Articles of Association also conferred power on the Directors and Managing Director to institute proceedings and delegate authority. On the merits, issuance of the cheques was not disputed, the business relationship and liability were admitted in the reply notice, and no satisfactory rebuttal evidence was produced to displace the statutory presumption or prove repayment. The findings recorded by the Trial Court and Appellate Court were based on the documentary and oral evidence and disclosed no perversity.

                            Conclusion: The complaint was maintainable, and the conviction and concurrent findings did not warrant interference in revision.

                            Final Conclusion: The revisional challenge failed, and the conviction under Section 138 of the Negotiable Instruments Act was left undisturbed.

                            Ratio Decidendi: A company may prosecute a complaint through an authorised representative where the institution of proceedings and subsequent evidence are supported by valid board authorisation and the governing corporate instruments, and concurrent findings based on admitted cheques and unrebutted liability will not be interfered with in revision absent perversity.


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                            ActsIncome Tax
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