Cheque bounce case against partners of a partnership firm

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    • #3342
      Anonymous
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      Sir, I am a businessman and having business transactions with many companies and firms. One such partnership firm had issued a cheque to me of Rs. 17 Lac in respect of the business transaction. There are two partners in the said firm. I have filed a case of cheque bouncing under Section 138 of the Negotiable Instruments Act in which both the partners have been made a party. The cheque was signed by one partner. Now, the magistrate before whom the case is listed has refused from making both the partners a party and has said that only the partner who had signed the cheque would be made a party and notice has been duly sent to only one of them. Kindly help me with this problem.

    • #3346

      In the case of Katta Sujatha v. Fertilizers & Chemicals Travancore Ltd., (2002) 7 SCC 655, which was a case of cheque dishonour under Section 138 of the Negotiable Instruments Act, the Supreme Court held that the partner of a firm is liable to be convicted for an offence committed by the firm if he was in charge of and was responsible to the firm for the conduct of the business of the firm or if it is proved that the offence was committed with the consent or connivance of, or was attributable to any neglect on the part of the partner concerned.

      In respect of the appellant in the above case, who was partner of the firm involved in the cheque bounce case, the Supreme Court observed that: “…the appellant was in no way involved in any of the transactions referred to in the complaint and it was not stated that she was in charge of the business and was responsible for the conduct of the business of the firm in terms of Section 141 of the Act nor was there any other allegation made against the appellant that she had connived with any other partner in the matter of issue of cheque.”

      In your case, you have mentioned that the cheque was signed by one partner. It is not clear from your question as to what was the specific role of the second partner in the case and also what specific averments were made in the complaint with regard to the second partner, i.e., whether he was in charge of the business and was responsible for the conduct of the business of the firm in terms of Section 141 of the Negotiable Instruments Act or is there any other allegation made against him that he had connived with the other partner in the matter of issue of cheque.

      Depending on all these issues and the facts of the case, the role of the second partner has to be decided by the court, i.e., whether the second partner is involved in the case as an accused or not. If you are not satisfied with the order of the trial court, you may challenge such decision before the next court.

           


      Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.

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