S.142 NI Act | Improper To Dismiss/Quash Cheque Dishonour Complaint Of Company At Threshold On Question Of Authorisation : Supreme Court

The Supreme Court ruled that under Section 142 of the Negotiable Instruments Act (NI Act), it is inappropriate to dismiss or quash a complaint for cheque dishonour solely on the grounds of lack of authorization at the threshold. The Court emphasized that questions about the authority of a company’s representative should be considered during trial, not at the pre-trial stage. Dismissing such complaints prematurely, based on mere suspicion, would be improper. This decision reinforces that the burden of proving authorization lies with the accused and can be addressed during the trial, upholding the principle that the rights of complainants in cheque dishonour cases should not be disregarded prematurely.