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TMI Blog2025 (4) TMI 1104X X X X Extracts X X X X X X X X Extracts X X X X ..... ble Court may pleased to: - (a) Quash the Complaint Case No 57538 of 2016 dated 05.07.2016 under Section 138 and Section 142 of the NI Act 1881 pending before the Learned Presiding Officer, Special Court (NI ACT) Rouze Avenue Court, New Delhi. (b) Pass any other further order which may deem fit and proper by this Hon'ble Court in the interest of justice." 2. The present petition arises out of a complaint case being CC No. 57538/2016 filed by the respondent/complainant against the present petitioner/accused for the offence punishable under Section 138 read with Section 142 of the Negotiable Instruments Act, 1881 (for short, 'NI Act'). The respondent/complainant is Private Limited Company registered under the Companies Act, 1956 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion and also, towards the Form-G from the Registrar of Firms wherein, the present petitioner is shown as 'Partner No. 4'. It is the case of the petitioner that the present complaint case is liable to be quashed on account of the fact that the respondent/complainant has not arrayed the said corporation/partnership firm, i.e., M/s Coal Corporation, as accused. In support of this contention, reliance has been placed on para 16 of Dilip Hariramani v. Bank of Baroda 2022 SCC OnLine SC 579, which reads as under: - "16. The provisions of Section 141 impose vicarious liability by deeming fiction which presupposes and requires the commission of the offence by the company or firm. Therefore, unless the company or firm has committed the offence as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in fact, the petitioner had replied to the said legal demand notice in the same capacity in which he was arrayed as accused in the complaint, i.e., Proprietor of M/s Coal Corporation. It is further submitted that the case is pending before the learned Trial Court for cross-examination of the complainant's witness and therefore, the complaint cannot be quashed, at this stage, solely on the aforesaid ground. 6. Heard learned counsel for the parties and perused the records. 7. In the complaint filed by the respondent/complainant, it is their case that the petitioner had issued the subject cheque in their favour on behalf of M/s Coal Corporation, which is proprietorship concern, as its proprietor in discharge of part of admitted legal liabili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ean 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 mean in relation to a firm, a partner in the firm. Thus, whereas in relation to a company, incorporated and registered under the Companies Act, 1956 or any other statute, a person as a Director must come with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ol of the day-to-day business of the company or the firm', the conviction of the appellant has to be set aside.12 The appellant cannot be convicted merely because he was a partner of the firm which had taken the loan or that he stood as a guarantor for such a loan. The Partnership Act, 1932 creates civil liability. ......." However, in the present case, the subject cheque has been issued by the present petitioner for M/s Coal Corporation and the statutory legal demand notice dated 03.06.2016 was also sent to the petitioner, the authorised signatory for M/s Coal Corporation, and the trial before the learned Trial Court is still pending. It is pertinent to note that nothing has been placed on record to show that the account from which the su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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