https://www.taxtmi.com/caselaws?id=342283 Proceedings under Section 138 of the Negotiable Instruments Act cannot be sustained against a partner alone where the partnership firm, for whose benefit the cheque was issued, has not been arraigned as an accused. Section 141 creates vicarious liability only when the principal offender, namely the firm or company, is before the Court. Although the Explanation to Section 141 treats a firm as a company and a partner as a director for this purpose, the statutory condition precedent remains that the firm must first be made an accused. In the absence of the firm, vicarious liability on the partner does not arise and the complaint is liable to be quashed. en-us Tue, 18 Apr 2017 00:00:00 +0530 Mon, 01 May 2017 08:54:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=342283 Proceedings under Section 138 of the Negotiable Instruments Act cannot be sustained against a partner alone where the partnership firm, for whose benefit the cheque was issued, has not been arraigned as an accused. Section 141 creates vicarious liability only when the principal offender, namely the firm or company, is before the Court. Although the Explanation to Section 141 treats a firm as a company and a partner as a director for this purpose, the statutory condition precedent remains that the firm must first be made an accused. In the absence of the firm, vicarious liability on the partner does not arise and the complaint is liable to be quashed. Case-Laws Indian Laws Tue, 18 Apr 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=342283