Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Indian Laws Indian Laws + HC Indian Laws - 1993 (8) TMI HC This

  • Login
  • Referred In
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

1993 (8) TMI 307 - HC - Indian Laws

Issues:
1. Can a payee or holder in due course of a cheque file a complaint through a power of attorney holder under Section 142 of the Negotiable Instruments Act, 1881?

Analysis:

Issue 1: Can a payee or holder in due course of a cheque file a complaint through a power of attorney holder under Section 142 of the Negotiable Instruments Act, 1881?

The case involved a complaint filed under Section 138 of the Negotiable Instruments Act, 1881, against the accused, with the complainant's power of attorney holder signing the complaint. The petitioner challenged the jurisdiction of the magistrate to take cognizance based on the power of attorney holder filing the complaint. The key contention was whether a power of attorney holder can file such a complaint as per Section 142 of the Act.

The court examined the language of Section 142, which mandates that only the payee or holder in due course can file a complaint for an offence under Section 138. The petitioner argued that the absence of specific provisions allowing an agent to file the complaint indicated legislative intent against such authorization. However, the court disagreed, stating that the Act did not explicitly restrict the filing of complaints through agents or power of attorney holders.

The court delved into the general legal principles regarding the right to appoint an agent, emphasizing that a power of attorney empowers the holder to act on behalf of the grantor. It cited legal precedents and the Power of Attorney Act, 1882, to support the authority of a power of attorney holder to act on behalf of the grantor effectively.

Further, the court distinguished a personal act requiring physical presence from the act of filing a complaint, noting that the Act did not stipulate personal filing by the payee or holder in due course. It highlighted a previous decision where it was held that steps could be taken to file a complaint on behalf of the aggrieved party, supporting the notion that a power of attorney holder can file a complaint under Section 142.

Ultimately, the court concluded that a power of attorney holder of a payee or holder in due course can indeed file a complaint under Section 142 of the Negotiable Instruments Act, 1881. The judgment dismissed the petitioner's challenge, affirming the validity of a complaint filed through a power of attorney holder in such cases.

 

 

 

 

Quick Updates:Latest Updates