Dishonor of Cheque - A proprietorship firm is neither a Company, ...

Proprietorship Firms: Only Proprietor Liable for Cheque Dishonor u/s 141; Firm Name Not Required in Lawsuit.

January 4, 2021

Case Laws     Indian Laws     HC

Dishonor of Cheque - A proprietorship firm is neither a Company, nor a partnership firm. It is merely a business name. Although even a partnership firm is not a juristic person, but in view of Order 30 Rule 1 CPC, the partners can sue or be sued in the name of firm. A suit by a proprietorship firm is only by its proprietor. Therefore, Section 141 of Negotiable Instruments Act, would not apply. Thus, the respondent alone can be prosecuted being the proprietor of the proprietorship firm. Accordingly, it is held, that the Trial Court, committed mistake by holding that since, the proprietorship firm was not arraigned as an accused, therefore, the complaint is not maintainable. - HC

View Source