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M. NAGAPRASANNA
JAI AGARWAL, S/O. D. K. AGARWAL – Appellant
Versus
INFLOW TECHNOLOGIES PRIVATE LIMITED, REP. BY ITS HEAD-CREDIT SERVICES, AND AUTHORIZED SIGNATORY, MR. E. C. PRAVEEN REDDY – Respondent
ORDER :
(M. NAGAPRASANNA, J.)
Heard the learned counsel Sri.Arun G., appearing for the petitioner/s and the learned counsel Sri.R.Kiran, appearing for the respondent/s in all these cases.
2. The petitioners in all these cases are erstwhile partners of R.R.INFOCOM. Since these are batch of petitions projecting a solitary issue in law they are taken up together and considered by this common order. The issue is whether the partners who have retired from partnership firm can be prosecuted for an offence punishable under Section 138 of the Negotiable Instruments Act, 1881, (hereinafter referred to as 'NI Act' for short) for a cheque that is rendered by the existing partner.
3. Crl.P.No.9443/2024 is preferred by accused Nos.3 and 4 - Jai Agarwal and Anjana Agarwal in C.C.No.9585/2023. Crl.P.No.8100/2023 is preferred by accused No.4 - Anjana Agarwal in C.C.No.7311/2023. Crl.P.No.13150/2023 is preferred by accused No.3 - Jai Agarwal in C.C.No.7311/2023. Crl.P.No.8523/2024 is preferred by accused Nos.3 and 4 - Jai Agarwal and Anjana Agarwal in C.C.No.9504/2023. The instrument involved in the subject transactions are three different cheques totally amounting to Rs.3,27,00,000/-. The complainant
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.
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.
Dishonour of cheque – Offence by Partnership Firm – Only that person who, at the time offence was committed, was in charge of and was responsible to company for conduct of business of company as well....
Partners of a firm are jointly and severally liable for cheque dishonor under the Negotiable Instruments Act, irrespective of whether a partner has formally resigned, as long as they were part of the....
(1) Dishonour of cheque – Offence by company – For fastening criminal liability, there is no legal requirement for complainant to show that accused partner of firm was aware about each and every tran....
A partner cannot be held liable under Section 138 of the NI Act without the partnership firm being arraigned as an accused, reaffirming the necessity of a separate legal entity in cheque dishonour ca....
Prosecution against a partner of a partnership firm under Section 138 of the N.I. Act is not maintainable without including the firm as an accused, affirming the principle of vicarious liability.
There is a presumption under Section 139 of the N.I.Act that there exists a legally enforceable debt or liability.
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