ALLAHABAD HIGH COURT
J. C. Mishra, J.
Mahfooz Carpets - Petitioner
versus
Oriental Rug Manufacturers -Respondent
Criminal Revision No. 836 of 1991
Decided on 12-9-1997

IMPORTANT POINTS
1. The liability u/s 141 of the Act of 1988 For offence committed under S. 138 of Negotiable Instruments Act, 1988 in case of firm is on every person who at the time of commission of offence was in charge of and responsible to the firm For the conduct of the business of the firm and where there is prima facie evidence –that firm arid partners were responsible- For the conduct of business of the firm and they had also agreed to bear the losses incurred by the firm in the business, the partners, would be held liable For the offence committed u/s 138 of the Act.
2. Where the memo intimating dishonour of cheque was sent to complainant on 1st May. 1989 and the Amending Act, 1988 introducing Section 138 in the Negotiable Instruments Act came into Force w.e.f 1st April, 1989 the cause of action For offence under Section 138 of the Act would be held to have been committed after coming into Force of Amending Act of 1988. The date of issuance of cheque is not relevant for determining the cause of action u/s 138.

Headnote:(1) Negotiable Instruments Act, 1988 - Section 138 - Dishonour of cheque - Cause of action - Memo intimating dishonouring of cheque sent to complainant on 1st May, 1989 - Amending Act of 1988 introducing chapter 17 containing Section 138 to 142 came into force w.e.f. 1st April, 1989 - Hence, offence u/s. 138 of the Act was committed after coming into force of Amending Act of 1988Date of issuance of cheque – Not relevant for determining as to when offence u/s, 138 was committed Order of Additional Sessions Judge holding that cause of action arose after insertion of Section 138 by Amending Act of 1988 - Not erroneous.

       (ii) Negotiable Instruments Act, 1988 - Sections 138 and 141 Dishonour of cheque issued by him Liability u/s. 141 - Prima facie evidence that firm and partners responsible for conduct of business of firm - Hence, partners of firm liable for offence u/s. 138-of Act.

       Result: Revision dismissed.