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K. SURENDER
N. V. Bharathi – Appellant
Versus
State of Telangana – Respondent
ORDER :
1. This Criminal Petition is filed to quash the proceedings against the petitioners/Accused in C.C.No.4 of 2019 on the file of X Special Magistrate, Erramanzil, Hyderabad for the offences under Sections 138 and 142 of the Negotiable Instruments Act, 1861 (for short, ‘the Act’).
2. The petitioners are being prosecuted by the respondents 2 and 3 for the offence under Section 138 of the Act. The case of the complainants is that the petitioners herein approached them for financial assistance and an amount of Rs.15.00 lakhs of hand loan was advanced. The said loan was acknowledged and the petitioners agreed to pay 18% interest per annum. A cheque No.118413 dated 07.05.2018 was issued for Rs.10.00 lakhs in the name of Nomula Hari Rishikesh. On presentation, the same was returned unpaid, for which reason, notice was issued. Having received notice, since the petitioners failed to make the payment covered by the cheque, present complaint was filed.
3. Learned counsel appearing for the petitioners would submit that the cheque was issued by the firm-proprietary concern namely Aditya Marine. Since the petitioners are partners of the firm, the prosecution without making the firm as an accu
Point of Law : Section 141 of N.I. Act provides that for purpose of this Section, "company" means anybody corporate and includes a firm or other association of Individuals; and "director", in relatio....
The main legal point established in the judgment is that the liability of a company and its director under Section 138 of the Negotiable Instruments Act, 1881 is contingent on the relationship betwee....
Section 141 of N.I. Act deals with offences by companies.
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 ....
Liability under Section 138 of the Negotiable Instruments Act cannot be established against a partner without including the partnership firm as an accused.
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....
Only the proprietor of a proprietorship firm can be held liable under Section 138 of the NI Act; mere representation does not establish liability.
Complaint under S.138/141 NI Act quashed for failure to implead/notice partnership firm and partners.
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