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Issues: (i) whether multiple dishonoured cheques arising from one commercial dealing could be treated as part of the same transaction and whether the bar under Section 219 of the Code of Criminal Procedure, 1973 applied; (ii) whether notice under Section 138 of the Negotiable Instruments Act, 1881 had to be issued separately to each partner when the drawer was a firm; (iii) whether the complaint disclosed the necessary averments to fasten liability on the partner(s) under Section 141 of the Negotiable Instruments Act, 1881.
Issue (i): whether multiple dishonoured cheques arising from one commercial dealing could be treated as part of the same transaction and whether the bar under Section 219 of the Code of Criminal Procedure, 1973 applied.
Analysis: The cheques were issued towards one debt arising from a single dealing, and the dishonour complaints stemmed from the same underlying transaction. In that setting, the prosecution could not be fragmented merely because more than three cheques were involved. The statutory restriction on joinder of offences did not operate to defeat the complaint in the peculiar facts.
Conclusion: The bar under Section 219 of the Code of Criminal Procedure, 1973 did not apply, and the complaints were not vitiated on that ground.
Issue (ii): whether notice under Section 138 of the Negotiable Instruments Act, 1881 had to be issued separately to each partner when the drawer was a firm.
Analysis: The requirement of the provision is notice to the drawer of the cheque. Where the drawer is the firm, service of notice upon the firm satisfies the statutory condition. Separate notice to every partner is not mandated by the provision.
Conclusion: Notice to the firm amounted to valid compliance with Section 138 of the Negotiable Instruments Act, 1881.
Issue (iii): whether the complaint disclosed the necessary averments to fasten liability on the partner(s) under Section 141 of the Negotiable Instruments Act, 1881.
Analysis: For vicarious liability under the provision, the complaint must contain the requisite averments that the concerned person was in charge of and responsible for the conduct of the business, or that the offence occurred with consent, connivance, or neglect. The complaint lacked such averments against two of the partners, so proceedings against them could not continue. As to the partner who issued the cheques, the allegations and role attributed to him were sufficient at the threshold for the complaint to proceed.
Conclusion: The complaint failed against the two partners for want of necessary averments, but it could proceed against the partner who issued the cheques.
Final Conclusion: The revisions were dismissed as to the two partners and allowed as to the partner who issued the cheques, with the complaint permitted to continue against him.
Ratio Decidendi: In a cheque dishonour prosecution, notice to the drawer is sufficient when the drawer is a firm, Section 219 of the Code of Criminal Procedure, 1973 does not bar prosecution where the cheques arise from one transaction, and vicarious liability under Section 141 of the Negotiable Instruments Act, 1881 requires clear averments of responsibility for the conduct of business.