Understanding the Law on Maintainability and Judicial Approach under Section 138 NI Act
The filing of a complaint under Section 138 of the Negotiable Instruments Act, 1881 (NI Act) requires that the complainant — whether an individual or a company — be duly entitled or authorized to initiate legal proceedings. But what happens when a complaint is filed by a person on behalf of a company without proper authorization? Should the court dismiss the complaint at the outset, or can this issue wait until the final hearing? And if an accused challenges this at the preliminary stage, is a criminal revision against rejection of such a plea maintainable?
This article examines these issues through the lens of Supreme Court and Bombay High Court precedents.
