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1997 (7) TMI 549

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..... ance of the matter* Issued summons against the petitioners. Aggrieved by initiation of criminal proceedings and cognizance taken by the court, the petitioners have filed these petitions under section 482 of the Code of Criminal Procedure ("the Crl. P.C." for brief), for quashing the proceedings and summons in exercise of inherent powers so as to meet the ends of justice and prevent abuse of the process of the court. The facts giving rise to these cases are briefly adverted to as hereunder : Respondent No. 2, Baccarose Perfumes and Beauty Products Ltd., is a company incorporated under the Companies Act, 1956 (the "Companies Act" for brief), having its registered office at Mumbai and manufacturing unit at Gandhidham. The said company is e .....

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..... d through and are sighed by the administrative manager, Mr. Laxman Naraindas Malkani. Mr. Unwala, the learned advocate, for the petitioners, has assailed the maintainability of the complaints mainly on the following grounds : ( i )that notice required under section/138 of the Act were not served upon petitioners Nos. 2 to 11 prior to institution of the complaints ; and ( ii )that the person filing the complaints is Laxman Narain Malkani who is neither payee nor holder in due course, therefore, he has no right to file the complaints. In the alternative, it is also stated that assuming that the complaints are filed on behalf of the payee, then also the signatory has no express authority to file the complaints. To repell these contenti .....

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..... Act defines "company" and the Explanation runs as under : "Explanation For the purposes of this section ( a )"company" means any body corporate and includes a firm or other association of individuals ; and ( b )"director", in relation to a firm, means a partner in the firm". It is needless to say that a company is a juristic person, a legal entity. A company though a legal entity does not have soul, mind, body and limbs to walk to the court for preferring a complaint. The dicates of common sense, practical wisdom, prudence and experience impel the courts in such a situation to allow a company to be represented by some person concerned with the affairs of the company. Similarly, in the case of a firm also, though strictly not a .....

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..... laint. A manager, administrative manager, or any officers or executives are also persons under the law to represent institutions and such incorporated bodies. Therefore, in my view, no authority is required specially keeping in mind the Explanation to section 141 of the Act. The question of authorisation could have arisen if the complaint is filed in a person's name for and on behalf of the company. An identical question arose for consideration before the Madras High Court in the case of Sagayadurai v. /. D. Electronics [1997] 2 Crimes 115, wherein the court held that, in that case of a firm, the manager is authorised to sign documents, agreements, therefore, the complaint filed by the manager on behalf of the firm is legal and vali .....

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..... ore taking cognizance, the complaint was held barred under section 142 of the Act and required to be quashed. In the light of the aforesaid facts and circumstances and in the light of the aforesaid discussion, in my view, since the complaints are filed in the name of the legal entity, respondent No. 2, there is no legal bar and the complaints are maintainable. Continuation thereof is absolutely in accordance with law, hence the question of abuse of the process of the court does not arise. In the same way, as the complaints are in consonance with the provisions of the Act, no interference is warranted in exercise of inherent powers. The ends of justice can also be met in continuing with proceedings as are to fulfil the paramount object of .....

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