Just a moment...
Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →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 a complaint under Section 138 read with Section 141 of the Negotiable Instruments Act, 1881 is maintainable against a partner when the partnership firm, which issued the cheque, is not arraigned as an accused.
Analysis: Section 141 creates a deeming fiction extending liability for the offence under Section 138 to the company or firm and to persons in charge of its business. The firm is treated as the principal offender, and the persons responsible for its conduct become liable by virtue of that statutory fiction. Where the cheque is issued by a partnership firm, the firm must be made an accused before vicarious liability can be fastened on the partner responsible for its affairs. Mere mention of the firm in the cause title, without impleading it as an accused in its own capacity, is insufficient.
Conclusion: The complaint was not maintainable against the petitioner alone without arraigning the partnership firm, and the proceedings were liable to be quashed in favour of the petitioner.
Ratio Decidendi: In a prosecution for dishonour of cheque by a partnership firm, the firm must be arraigned as an principal offender before vicarious liability can be imposed on the partner under Section 141 of the Negotiable Instruments Act, 1881.