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2001 Supreme(AP) 156

T.CH.SURYA RAO
Pritama Reddy – Appellant
Versus
Charminar Co-operative Urban Bank Ltd, – Respondent


Judgement Key Points

- (!) The Board of Directors’ authority to institute, defend, or conduct legal proceedings by or against the Bank. [2000061320008] - (!) Recovery Manager’s authority to file complaints under a Special Power of Attorney and Board resolution. [2000061320009][2000061320010] - (!) Timing and impact of filing defects (signature, vakalath) on limitation and cognizance; initial filing vs. representation. [2000061320018][2000061320021] - (!) Liability of Directors/Partners under Section 141 in relation to offences under Section 138, with averments of in-charge/responsible conduct. [2000061320022] - (!) Inherent jurisdiction under Section 482 not to quash where Board-authorised actions exist; petition dismissed. [2000061320023] - (!) Complainant’s status as a juristic person and the proper complainant/authorised representative under Section 142. [2000061320008][2000061320021] - (!) The need for Board-authorised resolution to initiate prosecutions; absence of specific per-complaint resolution not fatal where there is a general Board authorization. [2000061320015] - (!) Court’s view that omissions in minutes accompanying the POA do not automatically vitiate, given both POA and Board resolution exist. [2000061320010][2000061320015]

What is... How to determine whether a Recovery Manager or other authorised representative is duly authorised to file complaints under Section 138 of the Negotiable Instruments Act?

What is... How to treat defects in the complaint (e.g., signature of the complainant, lack of board minutes) and whether subsequent rectification cures such defects or affects limitation?

What is... How to determine the liability of directors/partners under Section 141 for offences under Section 138 where they are in charge of and responsible for day-to-day conduct of the company/firm?


T. SURYA RAO, J.

( 1 ) ALL these petitions have been filed invoking inherent jurisdiction of this Court under Section 482 of the Criminal Procedure Code ( the Code for brevity) seeking to quash the criminal complaints filed against the petitioners herein in C. C. Nos. 554/99 and 548/99 on the file of the XVI Metropolitan Magistrate Hyderabad.

( 2 ) THE petitioner is the same in Criminal Petition Nos. 4452 and 4453 of 2000 although the petitioner in 4455 of 2000 is different. The first respondent in all these petitions is the same being the complainant, who filed the criminal complaints against all these petitioners. Since common questions of law are involved in all these petitions, they can be disposed of together.

( 3 ) THE factual matrix germane for consideration for an effective adjudication of the matter may be set forth hereunder thus :-

( 4 ) THE first respondent herein-the complainant is a Co-operative Urban Bank established duly under the provision of A. P. Co-operative Societies Act and functioning under the name and style of the Charminar Urban Co-operative Bank Limited . It has its own Bye-laws duly registered. The first accused in C. C. Nos. 554/99 is M/s M. M. Restaura





















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