Back
ABHAY S. OKA, AUGUSTINE GEORGE MASIH
Shivappa Reddy – Appellant
Versus
S. Srinivasan – Respondent
JUDGMENT :
AUGUSTINE GEORGE MASIH, J.
1. Present Appeal is challenging the order dated 23.09.2023 passed by the Single Judge of the High Court of Karnataka at Bengaluru, whereby the petition filed under Section 482 of the Code of Criminal Procedure, 1973 (hereinafter “Cr.P.C.”) challenging the proceedings arising out of a complaint filed by the Appellant under Section 200 Cr.P.C. for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter “NI Act”) has been allowed at the behest of Respondent-Accused No. 4.
2. In brief, the facts leading to the filing of the petition before the High Court were that the Appellant had filed a complaint against M/s AVS Constructions - a Partnership Firm (Accused No. 1) and its partners i.e. S. Yuvaraju (Accused No. 2), S. Sundaraiah (Accused No. 3 and S. Srinivasan (Accused No. 4) for dishonouring of twelve cheques of Rs. 50,00,000/- (Rupees Fifty Lakhs) each aggregating Rs. 6,00,00,000/- (Six Crore) towards the refund of sale consideration as issued by accused No. 1-M/s AVS Constructions (hereinafter “Partnership Firm”) being signed by Accused No. 2, the authorized signatory. The cheques, upon presentation, stood di
(1) Dishonour of cheque – Offence by Partnership Firm – Merely putting forth resignation or Partners entering into agreement or drafting a deed or/and accepting resignation of a partner of Firm is in....
Partners can be held vicariously liable for dishonoured cheques issued by the firm, but liability must be established based on specific involvement in the transaction.
Retired partners cannot be prosecuted under Section 138 of the NI Act for cheques issued after their retirement unless specific averments of continued liability are made in the complaint.
Vicarious liability under Section 141 of the Negotiable Instruments Act applies to managing partners, making them liable for dishonoured cheques issued by the firm.
The obligation of partners to issue public notice of firm dissolution as per Section 45 and 72 of the Indian Partnership Act,1932, and the need to examine the substance of the allegations to fulfill ....
There is a presumption under Section 139 of the N.I.Act that there exists a legally enforceable debt or liability.
Negotiable instruments – Quash of criminal proceedings against one of the Director - petitioner was only a partner of the firm which has issued the cheque and she was not responsible for the conduct ....
The main legal point established in the judgment is the requirement for specific averments to establish vicarious liability of partners in a partnership firm under Section 138 of the NI Act and the n....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
