Vicarious liability under cheque dishonour law requires arraigning the firm first before proceeding against a partner.

Proceedings under Section 138 of the Negotiable Instruments Act cannot be sustained against a partner alone where the partnership firm, for whose benefit the cheque was issued, has not been arraigned as an accused. Section 141 creates vicarious liability only when the principal offender, namely the firm or company, is before the Court. Although the Explanation to Section 141 treats a firm as a company and a partner as a director for this purpose, the statutory condition precedent remains that the firm must first be made an accused. In the absence of the firm, vicarious liability on the partner does not arise and the complaint is liable to be quashed.

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Issues: Whether proceedings under Section 138 of the Negotiable Instruments Act, 1881 could continue against a partner when the partnership firm, on whose behalf the cheque was issued, had not been arraigned as an accused, thereby attracting vicarious liability under Section 141.

Analysis: A partnership firm is not a distinct legal entity separate from its partners in general law, but Section 141 of the Negotiable Instruments Act creates constructive liability only when the offence under Section 138 is committed by the company or firm. The Explanation to Section 141 includes a firm within the expression "company" and a partner within the expression "director", but the statutory scheme still requires the principal offender to be before the Court. Since the firm was not made an accused, the condition precedent for fastening vicarious liability on the partner was not satisfied.

Conclusion: The complaint could not be sustained against the petitioner alone, and the proceedings were liable to be quashed.

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