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

TMI Blog

Home

2007 (10) TMI 694

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... en arrayed as second accused out of two accused. It is submitted by the learned counsel for the petitioner that the first accused is the sole proprietrix and she only issued the disputed cheques involved in this matter and in view of the position of the first accused being the sole proprietrix, the question of implication of the second accused in respect of the offence committed by the sole proprietrix concern not at all arise. Learned counsel for the petitioner further contended that Section 141 of the Negotiable Instruments Act is not attracted. The said provision relates only in respect of a "company" or a "partnership firm" and not in respect of the "proprietary concern" and as such the petitioner being the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... refully considered the rival contentions put forward by either side and also perused the impugned complaint filed in this case and other materials available on record. 5. It is seen that the petitioner has been arrayed as A2 out of two accused in this case. The first accused is none else than the wife of the second accused in this case. Even as per the allegation and averment contained in the complaint, the first accused is the sole proprietrix of the concern called "Kamakshi Enterprises" and it is also not disputed and even specifically mentioned in the complaint to the effect that it is only the first accused issued the disputed cheques involved in this matter. In paragraph 5, it is specifically mentioned that the first accused .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... company within the meaning of the provisions of the Companies Act, 1956 or a partnership within the meaning of the provisions of the Partnership Act, 1932 or an association of persons which ordinarily would mean a body of persons which is not incorporated under any statute. A proprietary concern, however, stands absolutely on a different footing. A person may carry on business in the name of a business concern, but he being proprietor thereof, would be solely responsible for conduct of its affairs. A proprietary concern is not a company. Company in terms of the Explanation appended to Section 141 of the Negotiable Instruments Act, means any body corporate and includes a firm or other association of individuals. Director has been defined to .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... makshi Enterprises" and as such, the question of the second accused to be vicariously held liable for the offence said to have been committed by the first accused under Section 138 of the Negotiable Instruments Act not at all arise. 7. In view of the above said reasons, this Court is constrained to quash the proceedings initiated against the petitioner in so far as the petitioner is concerned pending in C.C.No.258 of 2001 on the file of the learned Judicial Magistrate No.1, Erode and is hereby quashed. The learned Judicial Magistrate No.1, Erode is also directed to expedite the trial as expeditiously as possible and more particularly within a period of five months from the date of receipt of a copy of this order in view of the fact th .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates