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TMI Blog1997 (2) TMI 577X X X X Extracts X X X X X X X X Extracts X X X X ..... o, Managing Partner and also against the petitioner herein Smt. B. Lakshmi w/o B. Narsing Rao, as partners of the said firm under Sections 138 and 142 of the Negotiable Instruments Act alleging that the accused No. 2, Managing Partner of M/s. Trishul Coal Services Transporters, has issued a cheque for ₹ 50,000/- (Rupees Fifty Thousands only) on 15-4-1995 drawn on State Bank of India, to discharge the hand loan taken from the complainant and the said cheque was dishonoured with an endorsement Account Closed and the accused failed to pay the amount in spite of notice. 3. The learned Magistrate took the case on file and issued summons to the accused 1 to 3. 4. The petitioner, who is A-3 in CC No. 11 of 1996 on the file of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s incorrect, and he relied on a decision K. M. Mathew v. State of Kerala , 1992CriLJ3779 , wherein it is held as under at Page 3780; of Cri LJ) :- .. When the accused enters appearance in response to the summons, the Magistrate has to take proceedings under Chapter XX of the Code. But the need to try the accused arises when there is allegation in the complaint that the accused has committed the crime. If there is no allegation in the complaint involving the accused in the commission of the crime, it is implied that the Magistrate has no jurisdiction to proceed against the accused. It is open to the accused to plead before the Magistrate that the process against him ought not to have been issued. The Magistrate may drop the procee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o punishment if he proves that the offence was committed without his knowledge or that he has exercised all due diligence to prevent the commission of such offence.. 12. It is clear from a reading of Section 141 of the Act that if the offence under Section 138 of the Negotiable Instruments Act is committed by the company or a firm, every person who was in charge and responsible for the affairs and conduct of the business of the company or firm, as the case may be, at the time when the alleged offence was committed, is also liable for prosecution along with the company. It is an admitted fact, in this case, that the cheque was issued by A-2 the Managing Partner of A-1 firm, and undisputably there is no allegation in the complaint that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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