Vicarious liability in cheque dishonour cases requires specific averments that a partner controlled the firm's business and knew of the cheque

A complaint under Sections 138 and 141 of the Negotiable Instruments Act is to be read as a whole, and specific averments that partners were in charge of and responsible for the firm's day-to-day business, and that the cheque was issued with their knowledge or consent, are ordinarily sufficient to fasten vicarious liability and permit process to issue. Hypertechnical scrutiny is unwarranted at the threshold, and quashing is justified only where unimpeachable material shows the accused could not have been concerned with the cheque. Mere bald denial, without a reply to the statutory notice or supporting material, did not displace the pleaded basis for proceeding.

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Issues: Whether the complaint and statutory notice contained sufficient averments to fasten vicarious liability on a partner under Section 141 of the Negotiable Instruments Act, 1881, so as to justify quashing of the proceedings under Section 482 of the Code of Criminal Procedure, 1973.

Analysis: The complaint and notice specifically stated that the firm was the drawer of the cheque, that the accused were partners, that they were in charge of and responsible for the day-to-day affairs of the firm, and that the cheque was issued with the knowledge and consent of the respondent. In proceedings under Sections 138 and 141 of the Negotiable Instruments Act, 1881, a complaint is to be read as a whole and hypertechnical scrutiny is unwarranted. Once the basic averment is made that a partner was in charge of and responsible for the conduct of the business at the relevant time, process can issue. Quashing at the threshold is justified only where unimpeachable and incontrovertible material shows that the accused could not have been concerned with the issuance of the cheque. No such material was produced. Mere bald denial, without a reply to the statutory notice or acceptable supporting material, was insufficient to displace the pleaded foundation for vicarious liability.

Conclusion: The complaint disclosed a sufficient factual foundation to proceed against the respondent, and the High Court was not justified in quashing the proceedings.

Ratio Decidendi: In a prosecution under Sections 138 and 141 of the Negotiable Instruments Act, 1881, a complaint containing specific averments that a partner was in charge of and responsible for the conduct of the firm's business, and that the cheque was issued with that partner's knowledge or consent, is ordinarily sufficient to proceed to trial unless the accused produces unimpeachable material showing that prosecution would be an abuse of process.

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