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E. V. VENUGOPAL
Sattar Ahmed – Appellant
Versus
State, rep. by the Public Prosecutor High Court, Hyderabad – Respondent
ORDER :
1. This Criminal Petition is filed under Section 482 Cr.P.C. seeking to quash the proceedings against the petitioners herein who were arrayed as accused Nos.3 and 4 in C.C.No.2333 of 2021 pending on the file of the Court of the X Metropolitan Magistrate, Hyderabad, registered for the offences punishable under Sections 138 and 142 of Negotiable Instruments Act, 1881.
2. Heard Sri A.Ram Babu, learned counsel for the petitioners, the learned Assistant Public Prosecutor for the State and Ms.Shreya, learned counsel representing Sri Damodar Mundra, learned counsel for respondent No.2.
3. Initially the second respondent instituted C.C.No.51 of 2014 on the file of VI Special Magistrate, Hyderabad, which subsequently was transferred to the Court of X Metropolitan Magistrate, Hyderabad where it was numbered as C.C.No.2333 of 2021, which proceedings are now sought for quashing.
4. The very institution of the said case by the second respondent herein was because of the action of the petitioners herein who were partners of the first accused – firm in issuing a cheque in the name of the firm and its consequent dishonour.
The facts in nutshell are that the second respondent is doing industrial
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.
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.
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....
Complaint under S.138/141 NI Act quashed for failure to implead/notice partnership firm and partners.
Vicarious liability under Section 141 of the Negotiable Instruments Act applies to managing partners, making them liable for dishonoured cheques issued by the firm.
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....
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....
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