1. A bill of exchange, hundi or promissory note shall be deemed to have been made, accepted, drawn or endorsed on behalf of a company if made, accepted, drawn, or endorsed in the name of, or on behalf of or on account of, the company by any person acting under its authority, express or implied.
2. A company may, by writing under its common seal, authorise any person, either generally or in respect of any specified matters, as its attorney to execute other deeds on its behalf in any place either in or outside India.
3. A deed signed by such an attorney on behalf of the company and under his seal shall bind the company and have the effect as if it were made under its common seal.
Legal Commentary & Landmark Judgments: Section 22
Section 22 regulates the execution of bills of exchange, promissory notes, and deeds by a company, eliminating the compulsory common seal requirement pursuant to the 2015 Amendment.
In conveyance and title investigations, verify whether deeds executed after May 29, 2015 (the 2015 Amendment date) bear either the common seal or the joint signatures of two directors (or one director and the CS) as mandated by Section 22(2) to ensure indefeasible title.