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2004 Supreme(Mad) 1755

High Court of Andhra Pradesh
THE HONOURABLE MR. JUSTICE G. BIKSHAPATHY, THE HONOURABLE MR. JUSTICE C.Y. SOMAYAJULU & THE HONOURABLE MR. JUSTICE CH.S.R.K. PRASAD
K.S. Ramachander Rao
Versus
The State of A.P., Rep., By its Public Prosecutor & Another
Criminal Petition Nos.2332, 2243 and 2244 of 2002 and CRL. P. No. 5361 of 2003
Decided on : 27-12-2004

Advocates Appeared:
For the Petitioner:Y.V. Ravi Prasad, Kuritibhaskara Rao, K. Ramesh Chowdary, Advocates. For the Respondents: R1, Public Prosecutor.

The main legal point established is that a power of attorney of a payee or a holder in due course of a dishonoured cheque can file a complaint for an offence under Section 138 of the Negotiable Instruments Act, 1881, after obtaining permission from the Court.

Headnote:

Power of Attorney - Complaint under Section 138 of Negotiable Instruments Act, 1881 - Section 2 of Powers of Attorney Act, 1882, and Section 183 of Contract Act - Summary of Acts and Sections: Sections 138, 142 of the Negotiable Instruments Act, 1881; Section 2 of Powers of Attorney Act, 1882; Section 183 of the Contract Act - The court discussed the interpretation of Section 138 and 142 of the Negotiable Instruments Act, 1881, in light of Section 2 of Powers of Attorney Act, 1882, and Section 183 of the Contract Act. It emphasized the principle of agency and the right of a power of attorney to act on behalf of the principal in filing a complaint under Section 138 of the Act.

Fact of the Case:

The accused filed a petition to quash proceedings under Section 138 of the Negotiable Instruments Act, 1881, arguing that a complaint by the General Power of Attorney of the payee is not maintainable. The Full Bench considered whether a power of attorney of a payee or a holder in due course of a dishonoured cheque can institute a complaint under Section 138 of the Act.

Finding of the Court:

The court found that a power of attorney of a payee or a holder in due course of a dishonoured cheque can file a complaint for an offence under Section 138 of the Act after obtaining permission from the Court, either before or after filing the complaint. The decision in S.P.Sampathy case stands overruled.

Issues: The key issue was whether a power of attorney of a payee or a holder in due course of a dishonoured cheque can institute a complaint under Section 138 of the Act.

Ratio Decidendi: The court emphasized the principle of agency and the right of a power of attorney to act on behalf of the principal in filing a complaint under Section 138 of the Act. It also discussed the interpretation of Section 138 and 142 of the Negotiable Instruments Act, 1881, in light of Section 2 of Powers of Attorney Act, 1882, and Section 183 of the Contract Act.

Final Decision: The court held that a power of attorney of a payee or a holder in due course of a dishonoured cheque can file a complaint for an offence under Section 138 of the Act after obtaining permission from the Court, either before or after filing the complaint. The decision in S.P.Sampathy case stands overruled.

Judgment :-

G. Biskhapathy, J.

The accused in C.C.No.2188 of 1999 on the file of the Court of the XI Metropolitan Magistrate, Secunderabad, filed Criminal Petition No.2332 of 2002 to quash the proceedings against him under Section 138 of Negotiable Instruments Act, 1881 (the Act), on the ground that the complaint against him, presented by the General Power of Attorney of the payee of the cheque issued by him, which was dishonoured, is not maintainable in view of S.P.SAMPATHY v. SMT. MANJU GUPTA 2002 (1) ALT (Crl.) 497 (D.B.) = 2002 CRI.L.J. 2621. When the said petition came up for hearing before one of us (C.Y.Somayajulu, J.), since Powers of Attorney Act, 1882, and Section 183 of Contract Act, 1872, recognizing the principle QUI FACIT PER ALIUM FACIT PER SE were not considered while rendering the said decision, the matter was referred to a Division Bench for reconsideration of the ratio in that decision in view of those provisions, and directed the Registry to post the case before an appropriate bench after obtaining orders from the Hon'ble the Chief Justice. The Hon'ble the Chief Justice referred the case to a full bench for its decision. That is how this case came before us.

2. The question to be answered by this Full Bench is whether power of attorney of a payee or a holder in due course of a dishonoured cheque can institute a complaint under Section 138 of the Act, on behalf of the payee or the holder in due course of the dishonoured cheque.

3. At our request, Sri T. Balireddy, Senior Advocate readily accepted to act as Amicus Curie. We place on record our appreciation for the valuable assistance rendered by him.

4. Since Section 142 of the Act lays down that notwithstanding anything contained in Cr.P.C. the Court cannot take cognizance of an offence punishable under Section 138 of the Act except upon a complaint in writing made by the payee or the holder in due course of the dishonoured cheque, keeping in view Section 5 Cr.P.C., the Division Bench in S.P.Sampathy Case (1 supra) held that complaint filed by a power of attorney of a payee or a holder in due course is not maintainable, without taking into consideration Section 2 of the Powers of Attorney Act, 1882, and Section 183 of the Contract Act.

5. The contention of Sri T.Balireddy, learned senior counsel, is that in view of Section 2 of the Powers of Attorney Act, 1882, read with the ratio in RAVULA SUBBARAO v. COMMR. OF INCOME TAX AIR 1956 SUPREME COURT 604 which approved the observation in Jackson & Co. v. Napper: In re Schmidts' Trade-Mark (1886) 35 Ch D 162 at p. 172(C) that every person who is sui juris has a right to appoint an agent for any purpose, except in cases where the act to be performed is personal in character, or is annexed to a public office, or an act involving fiduciary obligation, and since the Act does not lay down that the payee or the holder in due course should 'personally' file the complaint, complaint filed by the payee or the holder in due course of a dishonoured cheque through his Power of Attorney is maintainable, more so because in RAM CHANDRA v. STATE OF BIHAR AIR 1967 SUPREME COURT 349 the apex Court held that prosecution launched at the instance of the power of attorney of 'a person aggrieved' tantamounts to institution of the complaint by the person aggrieved himself. He relied on HAMSA v. IBRAHIM 1997 COMPANY CASES 800, M/S. RUBY LEATHER EXPORTS v. K. VENU REP. VANDANA CHEMICALS ETC. 1994(1) CRIMES 820 and ANIL G. SHAH v. I.J. CHITTRANJAN CO. 1998 CRI.L.J. 3870 where the Kerala, Madras and Gujarat High Courts took the view that a complaint filed by the power of attorney of a payee or holder in due course of a dishonoured cheque under Section 138 of the Act, is maintainable. He further contended that since in T. C. MATHAI Vs. DISTRICT AND SESSIONS JUDGE, THIRUVANANTHAPURAM, KERALA AIR 1999 SC 1385 it is held that an accused, after obtaining permission from Court, can appear through a power of attorney, there can be no impediment for








































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