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IN THE HIGH COURT OF DELHI AT NEW DELHI
NEENA BANSAL KRISHNA
Chahat Jain – Appellant
Versus
Innocept Global – Respondent
JUDGMENT :
NEENA BANSAL KRISHNA, J.
1. Petition Under Section 482 of the CRIMINAL PROCEDURE CODE , 1973, (hereinafter referred to as CRPC), read with Section 528 BNSS , 2023, seeking quashing of Complaint Case No. 3597/2019, under Section 138 of the Negotiable Instruments Act, 1881, ('NI Act') and consequent proceedings, pending trial before the Learned MM Delhi.
2. Respondent No.2/M/s Whitefox India is engaged in the business of events marketing, celebrity management, and other related activities. Respondent No.2/M/s Whitefox India planned a music concert of a famous International musician Audrey Drake Graham to be held in November 2018, for which Respondent No.2/M/s Whitefox India, through its partner Respondent No. 3/Arun Jain, entered into an Investment Agreement dated 26.06.2018 (“Investment Agreement”) with Respondent No.1/M/s Innocept Global for raising the funds required for the event.
3. Respondent No.1 was required to invest Rs. 4,00,00,000/- of which only Rs. 3,00,00,000/- were invested, and the same were given in the following manner:
i. Rs. 1,00,00,000/- paid on 17.05.2018 by way of RTGS.
ii. Rs. 50,00,000/- paid on 14.06.2018 by way of RTGS.
iii. Rs. 37,50,000/- paid on 10
Partners in a firm are vicariously liable under Section 141 of the NI Act unless they can substantiate their inactive participation in the firm's affairs.
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.
Negotiable instruments – Quash of criminal proceedings against one of the Director - petitioner was only a partner of the firm which has issued the cheque and she was not responsible for the conduct ....
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....
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.
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....
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