Back
R. THARANI
S. Sethuraman – Appellant
Versus
G. Selvamanikandan – Respondent
JUDGMENT
(Prayer: Criminal Original Petition is filed under Section 482 of Cr.P.C, to call for the records pertaining to the proceedings in C.C.No. 119 of 2021, on the file of the Judicial Magistrate No.II, Kovilpatti and to quash the same as against the petitioners.)
This petition is filed to quash the proceedings in C.C.No. 119 of 2021, on the file of the Judicial Magistrate No.II, Kovilpatti.
2. The allegation against the petitioners is that the petitioners borrowed a sum of Rs.16,00,000/- on 14.05.2019 and he promised to repay the same within a period of six months. After repeated demands, the second accused issued a post dated cheque drawn on Tamilnadu Merchantile Bank, Palayamkottai Branch, on 21.10.2020, in favour of the complainant and he directed the complainant to present the cheque. The complainant presented the cheque on 23.11.2020, through State Bank of India, Kovilpatti Branch and the cheque was dishonored with an endorsement "Account Closed". The accused Nos.2 to 4 are jointly or severally liable for the dishonor of the cheque and hence a legal notice was sent. Later a private complaint was registered.
3. On the side of the petitioners, it is stated that the first petiti
The liability of partners in a partnership firm and the legal enforceability of a time-barred debt under Section 138 of the Negotiable Instruments Act can only be determined after a detailed trial.
Directors or partners cannot be accused under Section 138 of the Negotiable Instruments Act, 1881 without specific allegations of their involvement in the day-to-day affairs of the company or firm.
Complaint under S.138/141 NI Act quashed for failure to implead/notice partnership firm and partners.
Partners can be held vicariously liable for dishonoured cheques issued by the firm, but liability must be established based on specific involvement in the transaction.
There is a presumption under Section 139 of the N.I.Act that there exists a legally enforceable debt or liability.
Vicarious liability under Section 141 of the Negotiable Instruments Act can only be imposed when the partner is in overall control of the day-to-day business of the firm, and the drawer of the cheque....
Vicarious liability under Section 141 of the Negotiable Instruments Act requires the accused to be in overall control of the firm's business, and prosecution under Section 138 is limited to the drawe....
The main legal point established in the judgment is that partners of a firm can be held vicariously liable for the dishonour of a cheque if they are actively involved in the day-to-day business of th....
The court emphasized that the specific allegations and knowledge of the accused are crucial in determining liability under Section 138 of the Negotiable Instrument Act.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
