A Legal proceeding instituted by a Juristic entity or by a Non-natural person may be dismissed for failure to pass appropriate Resolution in that behalf.
A person who claims to represent another is expected to produce an authority or power which entitles him to so appear.
The complainant as a body corporate can act only by resolutions passed by the directors at its meeting. There was no resolution passed by the complainant in favour of its Managing Director authorizing him to appoint any person to prosecute the defaulters whose cheques bounced.
Power to lodge complaints could have been given only by a resolution by the board of directors. There was none given and none was produced.
A complaint even by a director of a company was not maintainable without a resolution by the board of directors.
In the case at hand, as already stated, the complainant is a Society registered under the Societies Registration Act, 1860 and had passed no resolution authorizing the said Nikhil Desai to lodge a complaint on its behalf, and, therefore the complaint filed by the complainant could not have been considered as a complaint, as required to be filed under Section 142 of the Negotiable Instruments Act, 1881. In this view of the matter, the complaint filed, was rightly dismissed.
