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VENKATA JYOTHIRMAI PRATAPA
N. Srinivasulu – Appellant
Versus
State of Andhra Pradesh – Respondent
ORDER :
(Venkata Jyothirmai Pratapa, J.)
1. The instant petition under Section 482 of Code of Criminal Procedure, 1973,[for short 'Cr.P.C'] has been filed by the Petitioner/Accused No.4, seeking to quash the proceedings against him in C.C.No.154 of 2018 on the file of the Court of II Additional Judicial Magistrate of First Class, Nellore, which was registered for the offence punishable under Section 138 of the Negotiable Instruments Act,[for short 'the Act']
2. The facts which led to the filing of the present petition are:
b. At the request of Accused Nos. 2 to 4, complainant lent and made online transfer of an amount of Rs.7,30,000/- to A.1-firm on 03.12.2015, Rs.4,00,000/- and Rs.1,00,000/- on 05.01.2016 and Rs.3,50,000/- on 01.08.2016, in total to a tune of Rs.15,80,000/-. Thereafter, on the demand made by the Complainant, Accused No.5 along with Accused No.3 executed a demand promissory note on 01.08.2018 on behalf of A.1-firm in his favour, for an amount of Rs.15,80,000/- agreeing to repay t
Vicarious liability under Section 141 of the Negotiable Instruments Act applies to managing partners, making them liable for dishonoured cheques issued by the firm.
Vicarious liability applies to partners in a firm under Section 141 of the Negotiable Instruments Act, making them accountable for cheques issued by the firm, irrespective of individual management in....
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....
Prosecution under Section 138 of the N.I. Act is not maintainable against signatories of a cheque unless the firm, as the drawer, is also arraigned as an accused.
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.
Clear and specific averments are necessary in criminal complaints under N.I. Act to hold individuals vicariously liable; mere association with a firm or vague allegations are insufficient.
The court emphasized that the specific allegations and knowledge of the accused are crucial in determining liability under Section 138 of the Negotiable Instrument Act.
A complaint under Section 138 of the Negotiable Instruments Act is not maintainable if the Partnership Firm, which issued the cheques, is not made an accused.
The main legal point established in the judgment is the application of vicarious liability principles in determining the liability of officers of a company in respect of dishonour of a cheque.
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