Vinita S. Rao vs. M/s. Essen Corporate Services (P) Ltd. & Anr. (SC)

Negotiable Instruments Act, 1881–Sec. 138–Complaint through power of attorney–Legal situations :
(i) Filing of complaint u/s. 138 through power of attorney is perfectly legal and competent.
(ii) Power of attorney holder can depose and verify on oath before the Court in order to prove the contents of the complaint–However, he must have witnessed the transaction as an agent of the payee/holder in due course or possess due course or possess due knowledge regarding the said transaction.
(iii) It is required by the complainant to make a specific assertion as to the knowledge of the power of attorney holder in the said transaction explicitly in the complaint and the power of attorney holder who has no knowledge regarding the transactions cannot be examined as a witness in the case.
(iv) In the light of Sec. 145, it is open to the Magistrate to rely upon the verification in the form of affidavit filed by the complainant in support of the complaint and the Magistrate is neither mandatorily obliged to call upon the complainant to remain present before the Court nor to examine the complainant or his witness upon oath for taking the decision whether or not to issue process on the complaint.
(v) The functions under the general power of attorney cannot be delegated to another person without specific clause permitting the same in the power of attorney. Nevertheless, the general powers of attorney, itself can be cancelled and be given to another person.