Power of Attorney Holder's Testimony Validated; Accused Sentenced to Pay Fine and Imprisonment Till Rising of Court
In a significant judgment, the Kerala High Court, presided over by Justice A. Badharudeen, has overturned the acquittal of an accused in a cheque dishonour case, reinforcing the legal standing of evidence provided by a Power of Attorney holder. The judgment, delivered on March 12, 2026, in the appeal case Crl.A No. 685 of 2015, found the accused guilty under Section 138 of the Negotiable Instruments Act, 1881, resulting in a conviction with a modified sentence.
The case revolves around a dishonoured cheque dated March 5, 2011, amounting to Rs. 2,50,000, which the accused allegedly issued to the complainant. The complainant's initial attempt to prosecute the accused was dismissed by the Judicial First Class Magistrate Court-II, Karunagappally, due to doubts over the evidence presented by the complainant’s Power of Attorney holder, PW1, whose name was not initially cited in the witness schedule.
The High Court, however, found that the trial court erred in its judgment by dismissing the evidence of PW1 on technical grounds. Justice Badharudeen noted that PW1, the Power of Attorney holder, had direct knowledge of the transaction and had witnessed the issuance of the cheque, thus making his testimony both relevant and admissible. The court emphasized that a Power of Attorney holder is legally competent to testify on behalf of the complainant if they have witnessed the transaction and possess adequate knowledge of it.
The High Court further observed that the accused did not challenge the financial capacity of the complainant during the trial, thereby implying an acceptance of the complainant's financial status. This oversight by the accused led to the presumption under Sections 118 and 139 of the Negotiable Instruments Act, favoring the complainant, remaining unrebutted.
In light of these findings, the Kerala High Court overturned the trial court's acquittal and sentenced the accused to imprisonment till the rising of the court and imposed a fine of Rs. 4,00,000. In default of payment, the accused would face an additional six months of imprisonment. The court has directed the accused to appear before the Judicial First Class Magistrate Court-II, Karunagappally, on April 10, 2026, to undergo the modified sentence.
Bottom Line:
Negotiable Instruments Act, 1881 - Evidence of Power of Attorney Holder competent to prove the transaction leading to issuance of cheque, provided he has witnessed the transaction and has knowledge of it.
Statutory provision(s): Negotiable Instruments Act, 1881, Sections 138, 118, 139
