Kerala High Court Says Power of Attorney Holder Without Direct Knowledge Can’t Sustain Cheque Bounce Case

The Kerala High Court held that a cheque dishonour complaint filed by a company under Section 138 of the Negotiable Instruments Act cannot be sustained if the authorised representative or power of attorney holder neither witnessed the transaction nor had direct knowledge of it.

The Court observed that while a company may act through an authorised person, such a representative must be able to prove execution of the cheque. 

It noted that presumptions under Sections 118 and 139 of the NI Act arise only after execution is proved.

Since the complainant’s witness lacked direct knowledge, the conviction was set aside.

[Pattasseril Private Ltd. & Ors. v. State of Kerala & Anr.]