In Brief
A company's Managing Director filed a complaint for dishonour of eight cheques (Rs. 1,60,000 total) under the Negotiable Instruments Act, 1881. The trial court and High Court acquitted the respondent, citing defects in the complaint's format—specifically, that the Managing Director's name appeared first rather than the Company name, and that the Board Resolution lacked Board signatures. The Supreme Court reversed both orders, holding that the complaint was validly filed on behalf of the Company. The Court held that corporate representation does not require perfect procedural form if authorization, identity, and intent are clearly established. Absent any dispute over cheque signatures or fraud claims, the presumption under Section 139 of the NI Act applied. The respondent was sentenced to one year's imprisonment and fined Rs. 3,20,000, with suspension of imprisonment conditional on paying an additional Rs. 1,60,000 within two months."
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