Bombay High Court
Satish and Company
Versus
S.R. Traders
Decided On:

Headnote:Section 142-Cheque dishonour-Company filed a complaint through Its manager-Though he is not authorised to file the complaint-Held, such complaint not maintainable-Authorisation is favour of manager at a later stage will not activate prosecution.- The object of law in ail such cases, that the complaint or suit shall be filed by a person duly authorised, is that, such proceedings will definitely have financial consequences on the Company so as to bind the Company for the actions of such persons. A Company which suffered a decree or order, at the hands of such a person, who was not duly authorised, may repudiate the order and decree of a competent Court as not binding.

       Therefore, a principle has emerged that any legal proceedings whether criminal or civil shall be instituted by the company through its authorised officer, so as to bind the company. In this view of the matter, therefore, there shall be a proper initiation of the proceedings by filing a proper complaint so that the Court may take cognizance of the same and if the complaint, as filed was not maintainable, as on the date of its filing, It was liable to be dismissed and subsequent ratification cannot revive it.

       For Citation 1997 (4) All MR (Journal) 58