Just a moment...
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 under section 138 read with section 141 of the Negotiable Instruments Act, 1881 and the process order against a partner who did not sign the cheque could be quashed for absence of specific averments showing that he was in charge of and responsible for the conduct of the firm's business.
Analysis: The complaint contained no specific allegation as to the applicant's role in the transaction or his responsibility for the firm's day-to-day business. The partnership deed stated that the applicant was not a working partner, and the cheque was not signed by him. The Court held that vicarious liability under section 141 does not arise merely because a person is a partner; the complainant must make clear and unambiguous averments that the accused was in charge of and responsible for the conduct of business at the relevant time. In the absence of such foundational averments, the matter would amount to abuse of process. The Court also found that the process order was not a well-reasoned order and that the allegations, even if accepted as true, did not prima facie disclose an offence against the applicant.
Conclusion: The complaint and the process order were quashed and set aside insofar as they related to the applicant.
Ratio Decidendi: For fastening criminal liability under section 141 of the Negotiable Instruments Act, 1881, the complaint must contain specific averments showing that the accused was in charge of and responsible for the conduct of the firm's business at the time of the offence; absent such averments, mere partnership is insufficient to sustain prosecution.