P.J.Agro Tech Limited & Ors vs Water Base Limited

The Supreme Court addressed the applicability of Section 138 of the Negotiable Instruments Act, 1881, in a case where a cheque issued by an individual was claimed to be on behalf of a company. The Court held that for a company to be liable under Section 138, the cheque must be issued by an authorized signatory of the company, and since the cheque in question was issued from a personal account without authorization, the complaint against the company was an abuse of process. The Court quashed the proceedings against the Appellants, emphasizing the necessity of proper authorization in cheque transactions.