2026 (2) TMI 173

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....s.1 to 3 respectively, in CC No. 2764 of 2001 on the files of the Judicial First Class Magistrate Court -II, Ernakulam. They stood trial before that court for committing an offence punishable under Section 138 of NI Act. 3. The complainant is a company engaged in the manufacturing and sale of cement. The 1st accused is a private limited company, and the 2nd and 3rd accused are the directors of the 1st accused. The 1st accused purchased cement from the complainant company and, in discharge of the said liability, issued Ext.P2 cheque dated 21.08.2001 for Rs.8,71,695/- drawn on Canara Bank, Kadavanthra Branch. But when the cheque was presented for collection, it got dishonored for the reason that funds are insufficient. The statutory notice....

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.... regarding the transactions and execution of the cheque. He contended that none of the witnesses examined from the side of the complainant had any direct knowledge regarding the transactions or the issuance of the cheque, and therefore, even the initial onus cast on the complainant, to prove the execution of the cheque has not been discharged. 8. On an anxious consideration of the submissions made by the learned counsel for the revision petitioners, and the materials on record, I am of the view that there is some merit in it. It is to be seen that the complaint has been filed on behalf of the complainant by a person named Mr. Jayanthi Vijaya Bhaskara Sasthri, claiming to be the attorney holder of the complainant. But it is to be taken no....

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...., shows that he has not deposed anything about the execution or issuance of the cheque. 10. The company, being a juristic person, cannot act on its own and it must necessarily function through a human agency. A company is competent to initiate proceedings under Section 138 of NI Act and it can do so, through an authorised person. Even though, a power of attorney holder, being an authorised representative of the company, can file a complaint and give evidence, he must have either witnessed the transaction or must possess direct knowledge of the transaction. A person, who only became associated with the company after the transaction and who relies purely on records, cannot prove the execution of the cheque or the transaction. It is to be k....