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ARUN KUMAR SINGH DESHWAL
Parthas Textiles – Appellant
Versus
State of Uttar Pradesh – Respondent
JUDGMENT :
Honble Arun Kumar Singh Deshwal, J.
1. Heard learned counsel for the applicants and Sri Rajeev Kumar Singh, learned AGA for the State.
2. Present application under Section 482 Cr.P.C. has been filed for quashing the summoning order dated 27.07.2023 as well as non-bailable warrant dated 08.02.2024, including the entire criminal proceedings of Case No.563 of 2023, under Section 138 Negotiable Instrument Act (hereinafter will be referred to N.I. Act) and Section 420 IPC in Police Station-Luxa, District-Varanasi pending in the Additional Court, Varanasi.
3. Contention of learned counsel for the applicants is that as per the complaint itself, the cheque was issued on behalf of firm M/s Partha Textiles and the applicant No.2 is one of the partners of that firm but only the firm was impleaded as accused in the complaint. He further contended that in the complaint all the allegations were made against applicant no.1 (firm) itself, and no allegation was made against the present applicant, but the learned Magistrate issued a summons to the present applicant personally instead of issuing summons to the accused firm. It is further submitted that once the applicant no.2 was not impleaded
A firm must be summoned as a juristic person in cases under the N.I. Act, and partners can only be held vicariously liable if specifically named in the complaint.
The company must be summoned as an accused in Section 138 N.I. Act cases for proceedings against its Directors to be valid.
A director's personal endorsement of a cheque can implicate a company in liability under the NI Act, reinforcing the scrutiny necessary in summoning orders.
For maintaining a prosecution under Section 138 of the Negotiable Instruments Act, arraigning of the company as an accused is imperative. The person in charge of the company cannot be held liable if ....
Directors and company secretary can be held liable under Section 138 and 141 of the NI Act if they are responsible for the day-to-day affairs of the company or if their negligence, connivance, or con....
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....
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