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1997 (8) TMI 540 - HC - Indian Laws

Issues:
1. Quashing of proceedings under section 482, Cr.P.C.
2. Maintainability of complaint against partners under sections 138 and 142 of the Negotiable Instruments Act.
3. Legally enforceable debt under section 139 of the Negotiable Instruments Act.
4. Compliance with notice requirements under Section 138(b) of the Act.
5. Interpretation of Section 141 of the Negotiable Instruments Act regarding liability of persons in charge of a company.

Analysis:

1. The petition was filed under section 482, Cr.P.C. to quash the proceedings in a criminal case. The petitioners argued that the complaint was not maintainable against certain partners of a firm as they were not actively involved in the management. However, the court noted that the specific roles of the partners could only be determined during trial based on evidence provided by both parties.

2. The complaint alleged that partners of the firm were in charge and responsible for the conduct of the business, making them liable under Section 141 of the Negotiable Instruments Act. The court highlighted that partners' liability in cases of dishonored cheques issued on behalf of the firm is established under this section. The court emphasized that partners' knowledge and role in the business operations are crucial factors in determining their liability.

3. Regarding the enforceability of debt under section 139 of the Negotiable Instruments Act, the court noted that the presumption exists that a cheque is issued for the discharge of a debt unless proven otherwise. Any discrepancies in the amount claimed can be addressed during trial, as questions of fact cannot be decided in proceedings under Section 482, Cr.P.C.

4. The issue of compliance with notice requirements under Section 138(b) of the Act was raised by the petitioners. The court clarified that the notice is to be issued to the drawer of the cheque, not to every person responsible for the firm's affairs. The court emphasized that individual notices to partners are not mandatory before filing a complaint for dishonored cheques issued on behalf of the firm.

5. The court interpreted Section 141 of the Negotiable Instruments Act, emphasizing that partners in charge of the day-to-day business of a firm are deemed to be guilty of the offense if a dishonored cheque was issued on behalf of the firm. The court cited precedents from Delhi and Punjab & Haryana High Courts to support the interpretation that individual notices to partners are not required under this section.

In conclusion, the court dismissed the petition, stating that partners' liability depends on their roles in the firm's management, and individual notices are not mandatory before filing a complaint for dishonored cheques issued on behalf of the firm.

 

 

 

 

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