Vicarious liability under the Negotiable Instruments Act depends on control of the firm's business at the time of the offence.

Vicarious liability under Section 141 of the Negotiable Instruments Act attaches only to a partner who was in charge of and responsible for the firm's business when the offence was committed. A petition under Section 482 CrPC can justify quashing only on unimpeachable, uncontroverted material showing that prosecution would be an abuse of process. The claimed retirement from the partnership, the amended deed, and the alleged notice to the complainant were disputed, and the cheque was alleged to have been issued in replacement of a security cheque given when the petitioner was admittedly a partner. The effect of retirement was therefore a defence issue requiring trial, so quashing at the threshold was not warranted.

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Issues: Whether the petitioner was entitled to quashing of the summoning order in proceedings under Section 138 read with Section 141 of the Negotiable Instruments Act, 1881 on the ground that he had retired from the partnership and was not in charge of the firm when the cheque was issued or dishonoured.

Analysis: Vicarious liability under Section 141 attaches to a partner who was in charge of and responsible for the conduct of the business at the time of commission of the offence. A petition under Section 482 of the Code of Criminal Procedure, 1973 may succeed only where the accused produces unimpeachable and uncontroverted material showing that continuation of the prosecution would be an abuse of process. Here, the claimed retirement from the firm, the modified partnership deed, and the alleged intimation to the complainant were disputed. The cheque in question was alleged to be issued in replacement of a security cheque issued when the petitioner was admittedly a partner, and the effect of the alleged retirement was itself a matter of defence requiring trial.

Conclusion: Quashing was not warranted, because the material relied upon by the petitioner was not of such sterling quality as to conclusively negate liability at the threshold.

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