Just a moment...
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
Press 'Enter' after typing page number.
Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
Press 'Enter' after typing page number.
Press 'Enter' after typing page number.
Don't have an account? Register Here
Press 'Enter' after typing page number.
Issues: Whether the complaint disclosed the basic averments required to proceed against partners under section 141 of the Negotiable Instruments Act, 1881, and whether the order issuing process could be quashed on the basis of material said to negate their role in the transaction.
Analysis: For vicarious liability under section 141, the complaint must aver that the persons sought to be prosecuted were in charge of and responsible for the conduct of the business of the firm at the relevant time. The complaint, read as a whole, specifically stated that the firm was run and controlled by the accused, that they were personally involved in day-to-day affairs, that they purchased goods and made payments on behalf of the firm, and that they were authorised to sign cheques. Such averments satisfied the basic requirement for issuance of process. The material relied on by the applicants, including invoices placed in another proceeding, did not conclusively establish that they had no role in the transaction or in the issuance of cheques. Inherent jurisdiction under section 482 of the Code of Criminal Procedure, 1973 can be exercised even where basic averments exist, but only in rare cases where unimpeachable material destroys the substratum of the complaint. That threshold was not met.
Conclusion: The challenge to the issuance of process failed, and quashing was not warranted.