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2000 (2) TMI 888

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..... ict. The present petition has been filed by the accused-petitioners herein for quashing the same under section 482 Cr.P.C. 3. The complainant had made the following averments in his complaint. It was averred by the complainant that the complainant is doing business in Madanapalle Town under the name and style of M/s. Shine Enterprises. It is a partnership firm. It is the further case of the complainant that the complainant had a commercial dealing with the accused. They were purchasing non-alcoholic beverage drink called PEPUP black label since 1996. They had deposited a sum of Rs.10,000/- as a caution deposit with the accused. 4. It is the further case of the complainant that they were local distributors at Madanapalle. The first stock pur .....

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..... is filed against them, they approached this court for quashing the proceedings under section 482 Cr.P.C. 8. The main contention was raised on behalf of the accused petitioners herein that the complaint is not maintainable because of the fact that the complainant firm is not registered under section 69 of the Partnership Act, 1932. Section 69 of the Partnership Act reads as under: 69.EFFECT OF NON-REGISTRATION:- (1) No suit to enforce a right arising from a contract or conferred by this Act shall be instituted in any court by or on behalf of any person suing as a partner in a firm against the firm or any person alleged to be or to have been a partner in the firm unless the firm is registered and the person suing is or has been shown in the .....

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..... al Small Causes Courts Act, 1887 (9 of 1887) or to any proceeding in execution or other proceeding incidental to or arising from any such suit or claim With this legal provision on record it was contended by the learned counsel for the accused-petitioners herein that in order to maintain a criminal case under section 138 of the Negotiable Instruments Act, explanation to section 138 of Negotiable Instruments Act place an important role. Explanation to Section 138 of the said Act reads as under: For the purpose of this section, debt or other liability means a legally enforceable debt or other liability. 9. It was contended by the learned counsel Mr. J. V. Suryanarayana appearing for the petitioners that the complaint is not maintainable becau .....

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..... the suit was filed, two of the partners shown as partners as per the relevant entries in the Register of Firms were not, in fact, partners, one new partner had come in and two minors had been admitted to the benefit of the partnership firm regarding which no notice was given to the Registrar of Firms. Thus, the persons suing, namely, the current partners as on the date of the suit were not shown as partners in the Register of Firms. The result is that the suit was not maintainable in view of the provisions of sub-sec.(2) of Sec.69 of the said Partnership Act and the view taken by the trial court and confirmed by the High Court in this connection is correct. Although the plaint was amended on a later date that cannot save the suit. Reference .....

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..... a High Court, we prefer to differ with the views expressed by him. Explanation to Section 138 of the Negotiable Instruments Act specifically laid down that the debt or other liability means a legally enforceable debt or other liability. Enforcement of legal liability has to be in the nature of civil suit because the debt or other liability cannot be recovered by filing a criminal case and when there is a bar of filing a suit by unregistered firm, the bar equally applies to criminal case as laid down in explanation (2) of Section 138 of the Negotiable Instruments Act. 14. Considering the above legal aspect, we hold that it is a fit case wherein this court can exercise the powers under section 482 Cr.P.C. for quashing the criminal case. Accor .....

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