The SC held that in dishonour of cheque cases under Section 138...

The SC held that in dishonour of cheque cases under Section 138 read with Section 141, a partnership firm lacks separate legal personality and cannot be prosecuted independently of its partners. The partners are jointly and severally liable, not vicariously, for the offence, distinguishing them from a company which enjoys separate legal identity and vicarious liability of its directors. Consequently, the dismissal of the complaint for non-joinder of the partnership firm as an accused was erroneous. The notice issued to the partners is deemed to include the firm, and the complaint remains maintainable against the partners notwithstanding the firm's absence as a party. The SC set aside the High Court's order and allowed the appeal, permitting the partnership firm to be arraigned as an accused alongside its partners.

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