The High Court of Karnataka has said that Power of Attorney (PoA) holder can initiate criminal proceedings on behalf of his principal in cheque dishonour cases under the Section 138 of the Negotiable Instruments (NI) Act, 1881.
However, the court said the veracity of the complaint filed by the PoA holders would always be subject to cross-examination in the proceedings.
Justice Surah Govindaraj passed the order while dismissing a petition filed by an owner of a stone-crushers unit questioning the legality of the complaint of cheques dishonour cases filed by the Special PoA on behalf of the person aggrieved by the dishonour of the cheques.