SHANKAR FINANCE INVESTMENTS Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) The complainant in a proceedings under section 138 of the Negotiable Instruments Act, 1881 ('Act' for short), challenges in this appeal by special leave, the order dated 21.8.2002 passed by the Andhra Pradesh High Court in Criminal Petition No. 1737 of 2001 holding that the complaint signed by a Power of Attorney holder was not maintainable.

(2.) The appellant-complainant filed a complaint dated 2.4.1996 against respondents 2 to 4 herein (namely M/s. Speciality Aqua Ventures Ltd., its Managing Director and Chairman arrayed as accused 1, 2 and 3) alleging that a cheque for Rs. 12,40,000/- issued by the third respondent (on behalf of respondents 2 to 4) was dishonoured. Respondents 2 and 4 filed an application seeking discharge. The said petition was dismissed by the learned Magistrate by order dated 17.12.1998. The Revision filed by them against the order of the learned Magistrate was rejected by the Sessions Court on 12.2.2001. Thereafter, the fourth respondent herein (third accused) filed a petition under Section 482, Cr.PC for quashing the proceedings. The fourth respondent contended that he could not be arrayed as an accused as the cheque was issued by the third respondent in his individual capacity. The High Court allowed the said petition on a different ground, by order dated 21.8.2002, and quashed the complaint as against the fourth respondent. It held that the complaint was not signed by the payee, that is, the sole proprietor of the payee concern, but was signed by his Power of Attorney Holder and that was not permissible.

(3.) The said order of the High Court is challenged in this appeal by special leave. By interim orders dated 28.11.2003 and 2.4.2004, this Court stayed the operation of the order of the learned Single Judge and directed that the case should be proceeded with.