Just a moment...

Top
FeedbackReport
×

By creating an account you can:

Logo TaxTMI
>
Feedback/Report an Error
Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
TMI Blog
Home / RSS

Dishonor of Post-Dated Cheque: Partnership Firm Must Be Named Party Before Partners Can Face Section 138 Liability

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The HC dismissed an application concerning dishonor of a post-dated cheque under Section 138 of the N.I. Act. The Court held that the proceedings were fatally flawed because the partnership firm (Kishan Construction) was not made a party to the complaint, with only one partner (respondent Kishan Bouri) named as accused. Following precedents in Sarad Kumar Sanghi and Aneeta Hada, the Court emphasized that when a company/firm commits an offense under Section 138, the entity itself must be arraigned as a party before vicarious liability can attach to its partners/directors under Section 141. This defect was deemed incurable as no statutory notice was served on the firm within the prescribed 30-day period.....