Authorised Representative Lacking Direct Knowledge of Transaction Cannot Sustain Cheque Dishonour Case: Kerala High Court

The Kerala High Court has clarified the legal position regarding prosecution of cheque dishonour cases filed by companies under Section 138 of the Negotiable Instruments Act, 1881. The Court held that although a company can initiate such proceedings through an authorised representative or power of attorney holder, the representative must have direct knowledge of the transaction or must have personally witnessed it. Without such knowledge, the complaint itself fails at…