Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Indian Laws Indian Laws + HC Indian Laws - 2024 (2) TMI HC This

  • Login
  • Cases Cited
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2024 (2) TMI 721 - HC - Indian Laws


Issues:
The issues involved in the judgment are:
1. Assailing the order of summoning passed by the Trial Court under Section 138 of the Negotiable Instruments Act, 1881.
2. Legal notice not issued to the partnership firm, and the complaint filed against the partners without impleading the partnership firm.

Issue 1:
The petitioners sought to challenge the order of summoning dated 30.09.2021 under Section 138 of the Negotiable Instruments Act, 1881. The respondent alleged that a loan was given to the accused persons, and a cheque issued by them was dishonoured. The Revisional Court upheld the order, considering Section 24 of the Partnership Act, stating that notice to the partners shall operate as notice to the partnership firm. The amended memo of parties was filed before the issuance of summons, and no material irregularity was found.

Issue 2:
The main issue in the present petition was the absence of a legal notice to the partnership firm and the complaint being filed against the partners without impleading the partnership firm. The liability of the partners was considered vicarious under Section 141 of the NI Act. The complainant filed an amended memo of parties to include the partnership firm, but no demand notice was issued to the partnership firm as required by law. The courts below erred in allowing the amended memo of parties to overcome this defect. Citing precedent cases, the Court quashed the complaint under Section 138 of the NI Act as it was filed only against the partners without involving the partnership firm.

In conclusion, the petition was allowed, and the orders of the Trial Court and Revisional Court were set aside. The Court exercised its power under Section 482 Cr.P.C. to quash the complaint.

 

 

 

 

Quick Updates:Latest Updates