https://www.taxtmi.com/caselaws?id=97786 Section 89 of the Indian Companies Act, 1913 protects a company against liability on a negotiable instrument unless it is made, drawn, accepted or endorsed in the company's name or by a person acting under express or implied authority. That protection concerns enforcement of the instrument itself, not a dispute between a company and its bank over cheques honoured from the company's account. Where the bank pays cheques issued by persons known to be authorised to operate the account and acts bona fide, the company cannot invoke section 89 to recover the amounts merely because the cheques would not have been enforceable as instruments against the company. en-us Tue, 31 Jan 1961 00:00:00 +0530 Fri, 01 Jul 2016 18:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=97786 Section 89 of the Indian Companies Act, 1913 protects a company against liability on a negotiable instrument unless it is made, drawn, accepted or endorsed in the company's name or by a person acting under express or implied authority. That protection concerns enforcement of the instrument itself, not a dispute between a company and its bank over cheques honoured from the company's account. Where the bank pays cheques issued by persons known to be authorised to operate the account and acts bona fide, the company cannot invoke section 89 to recover the amounts merely because the cheques would not have been enforceable as instruments against the company. Case-Laws Companies Law Tue, 31 Jan 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=97786