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2026 Supreme(Online)(Chh) 1172

IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
SMT. MONALISA AGRAWAL – Appellant
Versus
DEVANAND PATEL – Respondent
ACQA/84/2019



Judgement Key Points

What is the maintainability of a complaint under Section 138 NI Act filed through a power of attorney holder, when the POA holder has knowledge of the transaction and is running the business on behalf of the complainant?

What are the requirements to prove an offence under Section 138 NI Act where the complainant uses a POA and the appellate court’s findings on the POA’s knowledge and authorization?

What is the impact of the Supreme Court reference Naresh Potteries vs. Aarti Industries on maintaining complaints under Section 138 NI Act filed through a power of attorney in the present case?


AFR

2026:CGHC:5631 HIGH COURT OF CHHATTISGARH AT BILASPUR ACQA No. 84 of 2019 Judgment reserved on 19. 01. 2026 Judgment delivered on 02.02.2026 Smt. Monalisa Agrawal W/o Shri Ajay Kumar Agrawal Aged About 41 Years Proprietor Of M/s Mahalxmi Tractors, R/o Danipara, Raigarh, District Raigarh Chhattisgarh.

... Appellant (s)

versus

1. Devanand Patel S/o Shri Shoukilal Patel Aged About 32 Years Occupation-

Agriculture And Transporting, R/o- Village- Armuda, P.O.- Mahloi, Tahsil Pussour, District- Raigarh, Chhattisgarh., District : Raigarh, Chhattisgarh

2. State Of Chhattisgarh Through District Magistrate- Raigarh, District-

Raigarh, Chhattisgarh., District : Raigarh, Chhattisgarh ... Respondent(s)

... Respondent(s)

... Respondent(s)

... Respondent(s)

Hon'ble Shri Justice Narendra Kumar Vyas

CAV Judgment

1. This acquittal appeal has been filed under Section 378 (4) of the Code of Criminal Procedure, 1973 against the order dated 30.07.2018 in Criminal Appeal No. 54 of 2018 and in Criminal Appeal No. 72 of 2018 passed by Digitally signed by SANTOSH SANTOSH KUMAR KUMAR SHARMA SHARMA Date:

2026.02.02 +0530

5th Additional Session Judge, Raigarh by which the learned 5th Additional Sessions Judge has set aside the judgment passed by Judicial Magistrate First Class,Raigarh in Criminal Appeal No. 891 of 2012 and acquitted the accused/respondent No.1 in CRA No. 54/20128 of the charge under Section 138 of the Negotiable Instrument Act and dismissed the CRA No.

72 of 2018 filed by the complainant.

2. Facts of the case, in brief, are that the complainant is running her business in the name and style of Mahalaxmi Tractors through its power of attorney holder Brij Mohan Agrawal. The complainant filed complaint under Section 138 of the Negotiable Instrument Act (hereinafter referred to the Act) through its power of attorney holder mainly contending that:-

(a) The accused has purchased one tractor along with tractor accessories namely Hydrolic Tractor trolley valued at Rs. 5,95,000/- on 22.05.2008 on credit with an understanding between them that the vehicle will be sold on credit in which the accused will pay 3% monthly interest. It is also case of the complainant that after providing the tractor, the complainant made all necessary efforts to get finance from Chhattisgarh Gramin Bank Brank Branch, Pusour but no finance was provided to the accused, as such the accused gave a cheque bearing cheque No. 416253 of Rs. 10,40,000/- payable at Karnataka Bank, Branch Raigarh on 26.12.2009 on the pretext that some portion of the property of the accused will be sold and the amount will be deposited in the said account, as such there will be no difficulty in honouring of the cheque but the amount was not credited which has dishonoured the cheque.

(b) Thereafter, consent was arrived at between the complainant and the accused on 22.05.2008 that the accused will pay rent @ 15, 000 per month for utilizing the tractor from 22.05.2008 to 21.02.2010, accordingly a cheque of Rs. 4,00,000/- was given on 29.01.2010 payable at Karnataka Bank Raigarh which was dishonoured, therefore, a complaint was lodged before the Judicial Magistrate First Class, Raigarh which is still pending.

(C) Thereafter the accused has returned the tractor along with accessories and Hydrolic Tractor trolley on 28.06.2010 and a registered agreement was executed on 18.07.2011. As per the terms of agreement a cheque of Rs.7,75,000/- being cheque no. 366921 dated 18.07.2011 was given by the accused to the complainant which was payable at Karnataka Bank, Raigarh with an understanding that the cheque will be enchased upto 18.09.2011, failing which the same can be recovered by taking recourse of law.

(d) It is also case of the complainant that the accused has requested the power of attorney holder of complainant that his land has not been sold but he will make the payment upto 11.11.2011 to the tune of Rs. 7,75,000 and remaining amount will be paid by the accused at Raigarh only. Since the amount was not given within the

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