Manager Cannot File Cheque Bounce Case in Personal Capacity if 'Payee' of Cheque is Firm: Kerala High Court

The Kerala High Court has held that a manager of a firm cannot personally file a complaint under Section 138 of the Negotiable Instruments Act, 1882 if the cheque was issued in favour of the firm.

Justice A. Badharudeen held that only the ‘payee’ or ‘holder in due course’ can file such complaints.

The Court was hearing a case where a manager of Kerala Roadway Ltd had filed the complaint in his personal capacity, despite the cheque being issued in the name of the firm.

The court clarified that unless it is a sole proprietorship, a manager has no locus standi to act on behalf of the firm and upheld the trial court’s acquittal.