Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1881 Negotiable Instruments Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Negotiable Instruments Act, 1881: ss.138, 142 – Complaint filed u/s.138 by the Managing Director of the appellant-company – Board Resolution authorising the Managing Director to file complaint for dishonour of cheque annexed with the complaint – Defence of respondent that the complaint was not in proper form as the complaint and the Board Resolution annexed did not lead to conclusion that it was filed on behalf of the Company – Held: It is quite apparent from the format of the complaint that the Managing Director had filed the complaint on behalf of the Company – There could be a format where the Company’s name is described first, suing through the Managing Director but there cannot be a fundamental defect merely because the name of the Managing Director is stated first followed by the post held in the Company – It would be too technical a view to take to defeat the complaint merely because the body of the complaint does not elaborate upon the authorisation – The artificial person being the Company had to act through a person/official, which logically would include the Chairman or Managing Director – Only the existence of authorisation could be verified – Respondent not having disputed his signatures on the cheques, it was for him to show in what circumstances the cheques had been issued, i.e., why was it not a cheque issued in due course – There was no plea of any fraud or misrepresentation – The complaint was properly instituted and the respondent failed to disclose why he did not meet the financial liability arising to a payee, who is a holder of a cheque in due course – Complaint was instituted in July, 2006 – In the given scenario, the respondent should be sentenced with imprisonment for a term of one year and with fine twice the amount of the cheque, i.e., Rs.3,20,000/- – However, in view of passage of time, the sentence would stand suspended if he pays a further sum of Rs.1,60,000/- to the appellant |
Judge | Hon'ble Mr. Justice Sanjay Kishan Kaul |
Neutral Citation | 2021 INSC 710 |
Petitioner | Bhupesh Rathod |
Respondent | Dayashankar Prasad Chaurasia & Anr. |
SCR | [2021] 7 S.C.R. 319 |
Judgement Date | 2021-11-10 |
Case Number | 1105 |
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