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2023 Supreme(Online)(P&H) 18861

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Jasjit Singh Bedi, J
Ravi Kumar Bhateja – Appellant
Versus
Jasbir Commission Agent – Respondent
CRM-M-61602-2023



Advocates:
For the Appellants/Petitioners: Sandeep Arora
For the Respondents: Vivek Dahiya, Anirudh Kaushal, B.S. Sudan

A partner who has validly resigned and notified statutory authorities cannot be held vicariously liable under Section 138 of the Negotiable Instruments Act for cheques issued by the firm post-resignation, absent specific, non-omnibus allegations of their involvement.

Headnote:(A) Negotiable Instruments Act, 1881 - Section 138 read with Section 141 - Indian Partnership Act, 1932 - Section 59 - Dishonour of cheque - Partners/Directors who have resigned from the firm/company and whose resignation has been duly communicated to the Registrar of Firms/Companies cannot be held liable for offences committed after their departure - Omnibus, presumptive, and ambiguous allegations in a complaint without specific details of the individual’s role in the daily business conduct are insufficient to sustain criminal proceedings.

Facts of the case:
Petitioners were partners in a firm that was dissolved on 21.06.2020. This dissolution was formally communicated to the Registrar of Firms under Section 59 of the Indian Partnership Act. A new partnership was formed between the remaining partner and a third party. The cheque in question was issued by the remaining partner on 22.03.2022, well after the petitioners’ departure. Despite this, the petitioners were arrayed as accused in a complaint filed under Section 138 of the NI Act, leading to a summoning order by the trial court.

Findings of Court:
The court observed that once a partner has resigned and the fact is communicated to statutory authorities, they cannot be held vicariously liable unless specific allegations are made of their involvement in the commission of the offence at the material time. The averments in the complaint were merely omnibus and failed to establish a prima facie case against the resigned partners.

Issues: Whether individuals who resigned from a partnership and communicated this fact to statutory authorities can be prosecuted for a cheque issued by the firm after their departure based on vague, omnibus allegations in the complaint.

Ratio Decidendi: Criminal proceedings under Section 138 r/w 141 of the NI Act cannot be maintained against a partner who has resigned and notified statutory authorities, especially when the complaint fails to provide specific, non-presumptive evidence of their active role or culpability at the time the offence was committed.

Result: Petition allowed; complaint and summoning order quashed qua the petitioners.

Table of Content
1. overview of the petition for quashing the complaint and the background facts. (Para 1 , 2 , 3 , 4 , 5)
2. contentions regarding the legal liability of retired partners. (Para 6 , 7)
3. analysis of legal precedents and the effect of resignation on vicarious liability. (Para 8 , 9 , 10 , 11 , 12)
4. final determination that omnibus allegations are insufficient against resigned partners. (Para 13 , 14 , 15)

JASJIT SINGH BEDI, J.

The prayer in the present petition under Section 482 Cr.P.C. is for quashing of the complaint No. NACT-210 of 2022 dated 12.07.2022 (Annexure P-1) titled as ‘M/s Jasbir Commission Agent vs. M/s Durga Rice Mills and others’ under Section 138 of Negotiable Instruments Act, 1881, the summoning order dated 12.07.2022 (Annexure P-2) passed by Judicial Magistrate 1st Class, Patti, vide which petitioners have been summoned to face trial under Section 138 of the Act along with all consequential proceedings arising therefrom.

2. The brief facts of the case are that the accused namely Robin Batra the working partner/authorized signatory of the accused partnership concern M/s Durga Rice Mills of which accused Nos.3 & 4 (including petitioner Nos.1 and 2 who are accused Nos.3 and 4 in the complaint) are the other partners, issued a Cheque No.499947 dated 22.03.2022 for an amount of Rs.2,59,273/- in favour of the complainant’s firm M/s Jasbir Commission Agent.

3. The aforementioned cheque got dishonoured leading to the issuance of a legal notice. On non-payment of the amount, a complaint was filed under Section 138 r/w Section 141 of the Negotiable Instruments Act. The copy of the complaint dated 12.07.2022 is attached as Annexure P-1 to the petition.

4. Based on the preliminary evidence led, the Court of the Judicial Magistrate, 1st Class, Patti summoned all the accused to face trial vide order dated 12.07.2022. The copy of the summoning order dated 12.07.2022 is attached as Annexure P-2 to the petition.

5. The aforementioned complaint dated 12.07.2022 (Annexure P-1) and summoning order dated 12.07.2022 (Annexure P-2) are under challenge in the present petition.

6. The learned counsel for the petitioners contends that the petitioners were earlier, the partners in the accused firm M/s Durga Rice Mills which was constituted under a Partnership Deed dated 25.09.2017. However, subsequently, the partnership was dissolved on 21.06.2020 and a written dissolution deed was prepared between the petitioners and the other partner namely Robin Batra in which it was duly mentioned that Robin Batra along with the petitioners who were carrying on the business of purchase, sale and husking of paddy and rice in the name and style of M/s Durga Rice Mills at Fazilka were exiting from the partnership and therefore, the dissolution deed dated 22.06.2020 duly signed by the continuing partner Robin Batra as well as retiring partners Ravi Kumar and Surinder Kumar (petitioners) was prepared. A written information of the dissolution was also sent to the Register of Firms maintained under Section 59 of the Indian Partnership Act. After the dissolution of the partnership between the petitioners and Robin Batra, Robin Batra entered into a partnership deed with Mona Rani on 22.06.2020. The cheque is dated 22.03.2022 and was signed by Robin Batra on behalf of the accused No.1-M/s Durga Rice Mills. The petitioners had duly responded to the legal notice apprising the complainant that they had got no concern with M/s Durga Rice Mills having exited from the partnership. Despite the said fact having been brought to the notice of the complainant, the petitioners were still arrayed as accused in the complaint and they have been summoned to face trial. He contends that the Directors/Partners who cease to remain so which fact has been duly communicated to the statutory authorities and against whom in the complaint no specific allegations have been levelled regarding the role played by them cannot be summoned to face trial. Therefore, the insta

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