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The HC dismissed the petition and declined discharge in a complaint under S.138 read with S.142 NI Act. The court held there was no binding compromise on record: the alleged out-of-court settlement was neither placed on record nor accompanied by sworn statements or a court order compounding the offence, so the complaint was not subsumed. Regarding vicarious liability, the petitioner-asserting status as a sleeping partner-was held prima facie liable under S.141(1) NI Act and Partnership Act principles because there is no material showing non-involvement in firm affairs; the defence of non-participation must be established at trial. Petition dismissed.
The HC dismissed the petition and declined discharge in a complaint under S.138 read with S.142 NI Act. The court held there was no binding compromise on record: the alleged out-of-court settlement was neither placed on record nor accompanied by sworn statements or a court order compounding the offence, so the complaint was not subsumed. Regarding vicarious liability, the petitioner-asserting status as a sleeping partner-was held prima facie liable under S.141(1) NI Act and Partnership Act principles because there is no material showing non-involvement in firm affairs; the defence of non-participation must be established at trial. Petition dismissed.
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