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Issues: Whether the complaint under Section 138 read with Section 141 of the Negotiable Instruments Act, 1881 contained the requisite averments to fasten vicarious liability on the partners of the firm and sustain the prosecution.
Analysis: For prosecution of partners of a firm, the complaint must contain clear, specific and unambiguous allegations showing that each accused was in charge of and responsible for the conduct of the business of the firm at the relevant time. Mere averments that one partner issued the cheque on behalf of all the accused and that the cheque represented a liability of all the accused are not sufficient by themselves. The foundational pleading must disclose the actual role of each accused; otherwise criminal liability cannot be fastened on every partner merely because of the partnership relationship. On the allegations pleaded, the complaint did not disclose such necessary foundation, and the material cited on behalf of the complainant did not cure that defect.
Conclusion: The complaint was not maintainable against the applicants for want of the essential averments required to invoke vicarious liability under Section 141 of the Negotiable Instruments Act, 1881.
Ratio Decidendi: Vicarious criminal liability of partners under Section 141 of the Negotiable Instruments Act, 1881 arises only when the complaint specifically alleges that each accused was in charge of and responsible for the conduct of the business of the firm at the time of the offence.