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N. ANAND VENKATESH
Sugunabhai @ Suguna – Appellant
Versus
Mathiyazhagan – Respondent
JUDGMENT
(Common Prayer: Criminal Original Petition filed under Section 482 of the Code of Criminal Procedure, to call for the records and quash the complaint in STC.Nos.199 and 201 of 2022, on the file of the District Munsif cum Judicial Magistrate, Kattumanarkoil.)
Common Order:
1. The issue involved in both these petitions are common and hence, they are taken up together, heard and disposed of through this common order.
2. These petitions have been filed to quash the proceedings in STC.No.199 of 2022 and STC No.201 of 2022, pending on the file of the District Munsif cum Judicial Magistrate, Kattumannarkovil.
3. The respondent had filed two complaints against the petitioner for offence u/s.138 of the Negotiable Instruments Act, 1881 based on two cheques which are said to have been issued by the petitioner in favour of the respondent for a liability which arose through a lease agreement entered into between the parties.
4. These quash petitions have been filed by the petitioner mainly on the ground that the cheque was issued by the Partnership Firm and the cheque was signed by the petitioner in her capacity as a partner and whereas the Partnership Firm has not been made as an accused an
A complaint under Section 138 of the Negotiable Instruments Act is not maintainable if the Partnership Firm, which issued the cheques, is not made an accused.
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.
Prosecution under Section 138 of the N.I. Act is not maintainable against signatories of a cheque unless the firm, as the drawer, is also arraigned as an accused.
Vicarious liability applies to partners in a firm under Section 141 of the Negotiable Instruments Act, making them accountable for cheques issued by the firm, irrespective of individual management in....
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.
The main legal point established in the judgment is the requirement for specific averments to establish vicarious liability of partners in a partnership firm under Section 138 of the NI Act and the n....
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