1984 (11) TMI 356 - HC - Indian Laws

Summary

Issues:
1. Liability of partners of a firm for prosecution in addition to the firm for non-compliance with license terms.
2. Impleading partners in a criminal prosecution against the firm.
3. Power of the High Court under Section 482 of the Criminal Procedure Code to quash proceedings against partners in a criminal prosecution.

Analysis:

Issue 1:
The judgment addresses the liability of partners of a firm for prosecution in addition to the firm for non-compliance with license terms. The court emphasizes that the licensed person, in this case, the firm, is personally liable for any violations. The liability cannot be extended to partners solely based on their position in the company. Specific averments must be made in the complaint against each partner to hold them individually responsible for the offense committed under the rule.

Issue 2:
Regarding the impleading of partners in a criminal prosecution against the firm, the court notes that the complaint lacked specific allegations against the partners individually. It highlights that partners cannot be held liable merely based on the assumption of their position in the firm. The complaint must establish that each partner is personally guilty of the act that constitutes an offense under the rule.

Issue 3:
The judgment delves into the power of the High Court under Section 482 of the Criminal Procedure Code to quash proceedings against partners in a criminal prosecution. It cites precedents where the Supreme Court outlined conditions under which criminal proceedings could be quashed. The court emphasizes that if, based on the complaint and accompanying documents, no offense is established against the accused, the High Court may quash the proceedings. In the present case, the court finds that the complaint does not make out a prima facie case against the partners, leading to the quashing of the proceedings against them.

In conclusion, the judgment clarifies the personal liability of partners for firm violations, the necessity of specific allegations against partners in a complaint, and the circumstances under which the High Court can exercise its power to quash criminal proceedings.