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IN THE HIGH COURT AT CALCUTTA
AJOY KUMAR MUKHERJEE
Maa Durga Trading Co. – Appellant
Versus
Sujeet Kumar Jaiswal – Respondent
JUDGMENT :
AJOY KUMAR MUKHERJEE, J.
1. The instant case had its origin on the basis of a petition of complaint under section 138/141 of the Negotiable Instrument Act (in short N.I. Act) filed by a partnership firm namely M/S Ma Durga Trading Company through one of its partner namely Amit Sugla against the partnership firm namely M/S Shiva Steels and two of its partners namely Sujeet kumar Jaiswal (respondent herein) and Sandeep Kumar Jaiswal alleging dishonour of cheque being no. 334375 dated 23.12.2013 for Rs. 14,63,427/-, allegedly issued in discharge of legally enforceable debt and/or liability of the partnership firm namely M/S Shiva Steels. During trial complainant examined one Amit Sugla as PW1 and proved the relevant documents to establish commission of offence, in terms of section 138 (b) of N.I. Act. Accused also adduced two witnesses in support of their defence and also exhibited documents on their side.
2. Learned Trial court came to a finding that accused no.1 i.e. the company namely M/S Shiva Steel and accused no.3, namely aforesaid Sandeep Kumar Jaiswal, a partner of M/S Shiva Steel raised some doubt in the mind of the court and for which they were acquitted but learned
For partners to incur vicarious liability under the Negotiable Instrument Act, the partnership firm must first be convicted of the offense; absence of firm conviction precludes individual partner lia....
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....
The central legal point established in the judgment is that maintaining the prosecution under Section 141 of the N.I. Act requires the company to be arraigned as an accused, and without fulfilling th....
Dishonour of cheque – Offence by company – In absence of company being arraigned as accused, complaint against accused is non-maintainable.
There is a presumption under Section 139 of the N.I.Act that there exists a legally enforceable debt or liability.
Liability of individuals in a partnership firm extends along with the firm in cases of dishonored cheques under Section 138 of the Negotiable Instrument Act.
Liability under Section 138 of the Negotiable Instruments Act cannot be established against a partner without including the partnership firm as an accused.
(1) Dishonour of cheque – Vicarious liability in criminal law in terms of Section 141 of NI Act cannot be fastened because of civil liability.(2) Dishonour of cheque – Vicarious liability arises only....
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.
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