IN THE HIGH COURT AT CALCUTTA
SHAMPA DUTT (PAUL), J.
Nikunj Keyal – Petitioner
Versus
M/S Golden Goenka Credit Pvt. Ltd. – Respondent
CRR 512 of 2020
Decided On : 11-05-2023
Criminal Procedure Code, 1973 – Section 204 – Negotiable Instruments Act – Sections 138, 141 – Partnership Act, 1932 – Section 48 – Dishonour of cheque - Quashing of Proceeding – Whether or not there was a lawfully recoverable debt or liability for discharge whereof the cheque was issued would be a matter that the trial Court will examine having regard to the evidence adduced before it and keeping in view the statutory presumption that unless rebutted the cheque is presumed to have been issued for a valid consideration - Held, Case petitioner is prima facie liable for debt of firm which includes cheque amount of case which was issued on behalf of partnership firm – Partners have an interest albeit in proportion to their share residue settlement of accounts on dissolution would have to be divided among partners proportion in which they were entitled profit settlement of accounts set out partnership asset in its entirety must be converted into money disbursement made – CRR dismissed.
JUDGMENT :
(Shampa Dutt (Paul), J.)
1. The present revision has been preferred praying for quashing of the proceeding in Complaint Case No. CS/97816 of 2018 dated November 20, 2018 under Sections 138/141 of the Negotiable Instruments Act and an order dated January 03, 2020 passed by the Learned Metropolitan Magistrate 16th Court at Calcutta and now pending before the said Court.
2. The petitioner’s case is that the petitioner was a former sleeping partner of M/S Investment and Commercial Enterprise, an unregistered partnership firm and he was not involved with the day to day affairs of the partnership firm.
3. The Opposite Party is a private limited company which carries on its business for providing finance/loans to individuals, companies and/or firms.
4. On November 20, 2018 the Opposite Party herein filed a complaint before the Court of the Learned Chief Metropolitan Magistrate at Calcutta under Sections 138/141 of the Negotiable Instruments Act against the petitioner.
5. On November 20, 2018 the Learned Chief Metropolitan Magistrate at Calcutta after receiving the complaint took cognizance of the same and transferred the case to the Court of the Learned Metropolitan Magistrate, 16th court at Calcutta for enquiry and disposal.
6. The Learned Metropolitan Magistrate, 16th Court at Calcutta on January 10, 2019 after perusing the Initial Deposition and after perusing the materials on record issued process under Section 204 of the Code of Criminal Procedure against the petitioner for the offence punishable under Section 138 of the Negotiable Instruments Act.
7. It is submitted that the Late father of the present petitioner was the principal partner of the partnership firm named and styled as M/s Investment and Commercial Enterprise.
8. The petitioner was the sleeping partner of the said partnership firm with only the petitioner and his father as the partners.
9. That as a security, the father of the petitioner namely Late Sanjay Kumar Keyal, issued a blank cheque in favour of the complainant bearing cheque no. 993898 drawn on Indusind Bank, Kolkata Stock Exchange Branch, Indian Exchange Place, Kolkata sometime in the year of 2017.
10. On November 1, 2017, the father of the petitioner Sri Sanjay Kumar Keyal expired.
11. That after the death of Sanjay Kumar Keyal, the Partnership firm which was formed on October 1, 2016 stood dissolved on and from March 27, 2018 and a sum of Rs. 600/-was paid as fees and charge for closure of the enlistment in the records of the Kolkata Municipal Corporation (License Department).
12. That the premises wherein the partnership firm being M/s Investment and Commercial Enterprise carried out its business was rented by Late Sanjay Kumar Keyal and by Ajay Keyal (Uncle of the petitioner) from one “The Rampuria Estates Pvt. Ltd.” for the last 30 years. That the petitioner is the director of a private limited company which carries on business under the name and style of M/s Kaypee Paper Industries Pvt. Ltd. from part of the same premises also rented from the Rampuria Estates Pvt. Ltd.
13. That the Opposite Party was intimated by the petitioner herein regarding the death of his father on November 01, 2017. Even on being informed about the death of the father of the petitioner, the complainant presented the cheque before the bank and got the instrument dishonoured with ulterior motive.
14. The Learned Trial Court has passed an order of attachment of the property of the unregistered firm. The local police station is trying to attach the present office premises of the petitioner which is in no way connected to the said partnership firm.
15. Mr. Navanil De, learned counsel for the petitioner has submitted that in a proceeding under N.I. Act, the principles of vicarious liability is not attracted and as such the proceeding against the petitioner being bad in law is liable to be quashed.
16. It is further submitted that since the partnership firm stood dissolved, the firm has got no existing liabilities in a crim
Aparna A. Shah vs Sheth Developers Private Limited and Anr.
Malabar Fisheries Co. Calicut v. CIT
S.V. Chandra Pandian v. S.V. Sivalinga Nadar (1993) 1 SCC 589
In a partnership firm, all partners are jointly and severally liable for dishonoured cheques issued under the firm's name, irrespective of individual signatures.
The main legal point established in the judgment is that retirement from a partnership firm subsequent to the issuance of a cheque does not exonerate the partners who had given the cheque when they w....
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.
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 ....
The presumption under Section 139 of the Negotiable Instruments Act is a rebuttable presumption, but the accused must adduce cogent evidence to rebut the presumption. The standard of proof required t....
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