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N. ANAND VENKATESH
Avinash Sargoi – Appellant
Versus
Tarun Jain – Respondent
JUDGMENT :
(Prayer: Criminal Original Petition filed under Section 482 of Criminal Procedure Code, to call for the records relating to the STC No.4603 of 2022, pending on the file of the learned XXV Metropolitan Magistrate, Egmore and quash the same.)
1. This petition has been filed seeking to quash the proceedings in STC No.4603 of 2022, pending on the file of the learned XXV Metropolitan Magistrate, Egmore.
2. The respondent has filed a complaint for offence under Section 138 of the Negotiable Instruments Act, 1881 against the partnership firm and its partners. The petitioner has been arrayed as A3 in the complaint.
3. The case of the respondent is that A1 Firm had borrowed a sum of Rs.10,00,000/- from the respondent. Out of this amount, Rs.4,35,000/- was due and payable. In order to discharge this liability, cheque was issued in favour of the respondent. When it was presented for encashment, it was returned with an endorsement 'stop payment'. After exchange of statutory notice, the complaint came to be filed before the Court below.
4. Heard the learned counsel for the petitioners and the learned counsel for the respondent.
5. The main ground that was raised by the learned counsel for
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.
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....
Vicarious liability under Section 141 of the Negotiable Instruments Act applies to managing partners, making them liable for dishonoured cheques issued by the firm.
Complaint under S.138/141 NI Act quashed for failure to implead/notice partnership firm and partners.
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.
Only the drawer of the cheque can be made an accused under Section 138 of the Negotiable Instruments Act, with the exception of directors/partners being vicariously liable for the debt/liability of t....
The main legal point established in the judgment is the application of vicarious liability principles in determining the liability of officers of a company in respect of dishonour of a cheque.
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.
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....
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