VidhiSangh

Supreme Court of India · 22/02/2022

M/S TRL KROSAKI REFRACTORIES LTD versus M/S SMS ASIA PRIVATE LIMITED & ANR.

[2022] 2 S.C.R. 268 · 2022 INSC 214

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Summary

The High Court quashed a company’s cheque-dishonour proceedings for supposed deficiencies in its representative’s authority and knowledge. The Court found that the company was the named payee-complainant, the delegation documents authorised its general manager, and the pleadings and transaction documents conveyed his knowledge. No rigid verbal formula was required. It restored the complaint, directed appearance without fresh summons and completion within six months of the specified first date, and awarded Rs.1 lakh costs.

Issues

  1. Whether the company’s complaint satisfied the payee requirement and representative-authorisation requirement.
  2. Whether explicit knowledge required a fixed form of pleading.
  3. Whether the cognizance order could be quashed on these disputed objections at the threshold.

Provisions considered

Held

Result

Appeal allowed with Rs.1 lakh costs to the appellant. Complaint restored; respondents directed to appear on 15 March 2022 without fresh summons, with trial to conclude within six months of that first date.

Judgment PDF: Supreme Court of India, [2022] 2 S.C.R. 268.