In Brief
M/s Naresh Potteries filed a cheque dishonor complaint under Section 138 of the Negotiable Instruments Act through its manager Neeraj Kumar, who held a power of attorney from the proprietor. The High Court quashed the complaint, finding insufficient explicit averments of the manager's personal knowledge. The Supreme Court reversed this decision, holding that when a proprietorship files a Section 138 complaint through an authorized manager, the statutory requirements are satisfied if the complaint is filed in the payee's name and the supporting documents collectively show authorization and knowledge. The Court emphasized that such assertions need not follow rigid formulae but must be gathered contextually from the entire record. Triable issues of authorization and knowledge cannot justify summary quashing under Section 482; they are for determination during trial.
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