Hindu Undivided Family is not an association of individuals under Section 141, limiting vicarious liability in cheque dishonour cases.

A Hindu Undivided Family is not an "association of individuals" within the inclusive meaning of "company" in the Explanation to Section 141 of the Negotiable Instruments Act, 1881. The provision contemplates a voluntary combination of persons acting for a common purpose with mutual rights and obligations, whereas an HUF is a status-based unit created by birth and not by free agreement. As a result, the vicarious liability principle used for companies and firms does not extend to an HUF, and prosecution of the Karta or members under Section 138 cannot rest on that classification alone where the HUF is not arraigned as an accused.

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Issues: Whether a Hindu Undivided Family falls within the expression "company" in the Explanation to Section 141 of the Negotiable Instruments Act, 1881 as an "association of individuals", so as to make the Karta or members liable for prosecution under Section 138 in the absence of the HUF being arraigned as an accused.

Analysis: The expression "company" in Section 141 is an inclusive definition and covers a body corporate, firm, or other association of individuals. An association of individuals, however, connotes persons joining together of their own volition in a common purpose and in a manner that creates mutual rights and obligations. A Hindu Undivided Family is constituted by status and birth, not by free agreement or volition, and its members do not become co-owners or associates by choice. The reasoning supporting vicarious liability under Section 141 therefore cannot be extended to an HUF, and the principle applicable to prosecution of companies does not fit the HUF structure.

Conclusion: A Hindu Undivided Family is not an association of individuals within the meaning of Section 141, and the quashing challenge failed.

Final Conclusion: The complaint under Section 138 could proceed against the signatory, and the writ application seeking quashing of the criminal case was rejected.

Ratio Decidendi: For Section 141 of the Negotiable Instruments Act, 1881, an "association of individuals" requires a voluntary combination united by common purpose and mutual legal obligations; a Hindu Undivided Family, being a status-based unit formed by birth, does not satisfy that requirement.

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