9911796707
TMI Blog1997 (6) TMI 368X X X X Extracts X X X X X X X X Extracts X X X X ..... ments of this complaint-petition, the allegations against these petitioners are as follows : The 1st accused M/s. Padmalaya Finance Corporation is a partnership firm and carrying on finance business. The 2nd accused Aluvelu Mangamma is its Managing Partner. Accused 3, 4 and 5 (petitioner herein) are its partners, 6th accused is its Manager and 7th accused is the husband of the 2nd accused. The 1st respondent-complainant deposited a sum of ₹ 15,000/- on 17-1-1986 and ₹ 15,500/- on 12-1-1987 with the 1st accused and the 1st accused agreed to pay on the said amounts interest at 12% per annum on demand, every year and it has been doing so every year. The last statement of accounts for the period from 1-4-1993 to 31-3-1994 was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eavy loss and therefore, with the consent of all the creditors, the amounts due to them were transferred to M/s. Krishna Enterprises on account of the business arrangements. The complainant never gave consent for the alleged transfer of account from A-1 to M/s. Krishna Enterprises. Therefore, the complainant alleged, that all the accused are liable for punishment for the offences under Sections 120B, 420, 406 and 468 of Indian Penal Code. Challenging the said complaint, the accused 3, 4 and 5 have come up with this petition. 3. The learned counsel for the petitioners raised the following contentions : (1) The complaint is not maintainable both on facts and law - that the petitioners have ceased to be the partners of the A-1 firm w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... they happened to be the partners on the date when the complainant deposited the amounts with the firm. The learned counsel further submits that the petitioners have been praying to quash the proceedings against all the accused and as such, it is not maintainable. The learned Public Prosecutor simply submitted that there is no abuse of process of the Court and as such, the present application is not maintainable. 5. The point for consideration is whether there are justifiable grounds to quash the proceedings in C.C. No. 442/94, initiated against these petitioners. 6. It is not disputed that the petitioners herein who are A-3. A-4 and A-5 in the criminal case constituted partners of the 1st accused firm originally. It is also not disput ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... carry on business. It is only a collective name for individuals carrying on business in partnership. The essential characteristic of a firm is, that each partner is a representative of other partner. Each of the partners is an agent as well as principal. He is an agent insofar as he can bind the other partners by his acts within the scope of the partnership agreement. He is principal to the extent that he is bound by the acts of other partners. In fact, every partner is liable for an act of the firm . Act of a firm has been defined to mean any act or omission by all the partners or by any partner or agent of the firm which gives rise to a right enforceable by or against the firm. This is the civil liability of the firm and its partners ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... they ceased to be partners of A-1 firm by the date of the alleged offences. Further, the details of the document which were said to have been fabricated or forged are also not mentioned in the complaint. Further, the averments in the complaint make out a civil liability. The criminal proceedings initiated against the partners, in my opinion, definitely amount to abuse of process of the Court as the allegations found in the complaint do not constitute any offence against these petitioners. As such, the criminal proceedings are liable to be quashed. 9. For the reasons stated above, the petition is allowed. The proceedings in C.C. No. 442/96 on the file of the III Metropolitan Magistrate, Vijayawada as against the petitioners herein are qua ..... X X X X Extracts X X X X X X X X Extracts X X X X
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