In a case under Section 138 of the N.I. Act against partners of ...

Compounding of Offense by One Partner Under Section 138 NI Act Discharges All Partners' Liability

March 11, 2025

Case Laws Indian Laws HC

In a case under Section 138 of the N.I. Act against partners of a firm, the HC held that compounding of the offense by one partner discharges the entire liability of the partnership firm and all partners. The court emphasized that while a firm is not a legal entity separate from its partners, Section 141 of the N.I. Act allows prosecution in the firm's name. Partners' liability is joint and several, meaning each partner is liable for the entire debt individually and collectively. The court rejected partial settlement with one partner, ruling that once a matter is compromised for any amount, the offense is compounded toward all existing liabilities of the firm. Consequently, the complaint was quashed as compounded and the petitioner was acquitted.

View Source

← Previous Next →

In a case under Section 138 of the N.I. Act against partners of ...

Compounding of Offense by One Partner Under Section 138 NI Act Discharges All Partners' Liability

March 11, 2025

Case Laws Indian Laws HC

You may also like:

Compounding of offence(s) - determination of compounding fee - first occasion - 5% or 3% of the amount of tax in default - Since a common application had been filed for...

SC allowed appeal against rejection of compounding application for offense under s.276CC for delayed tax return filing. Court held offense under s.276CC is committed day...

The guidelines provide a comprehensive framework for compounding offenses under the Income Tax Act, 1961. The key points are: 1. Compounding is permissible for specified...

Vicarious liability of partner of the firm - separate identity of partnership firm - merely the petitioner running a firm, but it is not a legal entity and it cannot be...

CIRP - Reimbursement of Compounding fees - Who is responsible for offence or compounding of offence under the Income Tax Act which was committed much before the...

Compounding of offences - KVAT Act - For compounding an offence, which of the compounding fees should be paid by the assessee: the one prevailing when the evasion took...

Validity of the order 278(2) - compounding of offence u/s 279(2) - Income Tax Authorities have the power to compound the offence either before or after the institution...

Compounding of offences - threshold limit of holding directorship in companies - This Court is of the opinion that earlier one show cause notice was issued on...

Compounding of offences u/s 279(2) - assessee had committed not one but multiple grave offences - There is no merits in this writ petition as petitioner has shown no...

Compounding of offences u/s 279 - liberalisation of policy of the CBDT- applications for compounding of non-technical offences - imprisonment for less than 2 years was...

Compounding of offences and payment of compounding fee - there are no complaints and there is no inspection/investigation pending. - In the present case, the company has...

Compounding of the offence committed for failure to pay the Tax Deducted at Source (TDS) - There is no limitation prescribed - Since the applications filed by the...

Compounding of offence - non-compliance with the CSR initiatives - for violation of provisions of section 134(3)(o) r.w.s 135 of the Companies Act, 2013 - prosecution...

Compounding of Offences - non-filing of the cost audit report - section 233B of the Companies Act, 1956 - this Tribunal has the power to compound the offence as brought...

Compounding of certain offences - to enable Tribunal to compound offences punishable with fine only or with fine or imprisonment or both - Section 441 of the Companies Act, 2013

Quick Updates: