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Issues: Whether a complaint under Section 138 of the Negotiable Instruments Act, 1881 was maintainable against the partner alone when the cheque was issued on behalf of a partnership firm, but no statutory notice was issued to the firm and the firm was not impleaded as an accused.
Analysis: The liability under Section 138, read with Section 141 where the drawer is a juristic entity, depends on compliance with the statutory pre-conditions and on arraigning the principal offender as an accused. Where the cheque is issued on behalf of a firm, notice must be addressed to the firm and the firm must be made an accused before vicarious liability can be fastened on the partner who signed the cheque. In the present case, the cheque was issued for the partnership firm, but notice was served only on the partner and the firm was neither noticed nor impleaded. The complaint therefore failed to satisfy the legal requirements for prosecution.
Conclusion: The complaint was not maintainable against the petitioner alone, and the proceedings were liable to be quashed.