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IN THE HIGH COURT OF DELHI AT NEW DELHI
Amit Mahajan
Himanshu – Appellant
Versus
TCNS Clothing Co. Ltd. – Respondent
JUDGMENT :
Amit Mahajan, J.
1. The present petition has been filed seeking quashing of Complaint Case No. 2542/2019 pending before the learned Metropolitan Magistrate ('MM'), South District, Saket Courts, New Delhi, for offence under Section 138 read with Section 142 of the Negotiable Instruments Act, 1881 ('NI Act').
2. Briefly stated, the facts of the case are that the petitioner is a partner in the partnership firm namely– A & A Enterprises that entered into a Franchisee Agreement dated 28.12.2012 with the respondent company namely– TCNS Clothing Co. Ltd. (hereafter ‘complainant'), who is in the business of sale of women's apparel and accessories under the brand name “W”, “Aurelia” and “Wishful”. In pursuance of the Franchisee Agreement dated 28.12.2012, A & A Enterprises was appointed as a retailer / retail operator of the products of the respondent company and was to establish and operate a retail outlet at Store No. 111, Moments Mall, Patel Road, New Delhi. It is alleged that various products were delivered to the petitioner through invoices in which Customer Code No. 119101 has been mentioned and the same have been received by the petitioner. It is alleged that a total sum of
For personal liability under Section 138 of the NI Act, the company must be impleaded as a primary accused; non-impleadment is curable and amendments should be permitted if they do not alter the comp....
The judgment established the legality of amendments in complaints, the vicarious liability of individuals in a firm under Section 141 of the NI Act, and the burden of proof on the accused.
The main legal point established in the judgment is the necessity of impleading the company as an accused for maintaining the prosecution under Section 141 of the Negotiable Instruments act, 1881.
Criminal proceedings under Section 138 of the N.I. Act require the partnership firm to be arraigned as an accused; failure to do so renders the proceedings against individual partners not maintainabl....
A complaint under the Negotiable Instruments Act is not maintainable if the partnership firm is not made a party, as individual partners cannot be liable without arraigning the firm as a principal ac....
A complaint under Section 138 of the Negotiable Instruments Act, 1881, can be amended to include the name of the company as an accused, even if the company was not originally named as an accused in t....
When no offence is attributable to the Company, it is not possible to attach liability on the Managing Director by the deeming provisions of Section 141 of the N.I. Act.
Directors cannot be prosecuted under Section 138 of the NI Act without the company being joined as an accused, as vicarious liability requires the company to be a party to the proceedings.
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