Sec 138 of ni act

basavaraj shiromani (Querist) 07 October 2012 This query is : Resolved
Sir,

A Sugar factory Committee passed a resolution in favour two persons to sign on necessary papers to lodge a complaint u/s 138 of NI act against the accused. The complaint is filed in the name of a factory through one of the person as per the resolution passed by the factory. He signed on the complaint. But there was no authorization letter by the factory to lodge a complaint.

my question is,

Whether a resolution of the factory is sufficient to lodge a complaint or authorization is also required. Whether he is a competent person to lodge a complaint against the accused. Who is to sign on the complaint.

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prabhakar singh (Expert) 07 October 2012
There is no illegality depending upon which
defense can sail it's defense boat.

Even a resolution by company is sufficient.

Nadeem Qureshi (Expert) 07 October 2012
Dear Querist
Only resolution is not sufficient, the authority letter or POA is mandatory to filed a case on behalf of the company or factory by any employee of the factory or company or any other person.

Guest (Expert) 07 October 2012
Mere passing of resolution does not authorise the person. Passing of resolution just paves the way as an approval for formal authorisation of certain official to execute on behalf of the company, organisation or committee. Execution of the resolution is also a must by issue of the formal authority letter or POA in the name of the person approved to act on behalf of the organisation through the resolution.

basavaraj shiromani (Querist) 07 October 2012
Thank you Nadeemjee and P.S.Dingra for your suggestions regarding filing of a complaint u/s 138 of NI Act as resolution and authorization also required. Please provide any rulings in this regard.

thank you,

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