FEMA, BANKING & INSURANCE: In a cheque dishonour case involving a partnership firm, complaint cannot be maintained against partners of firm without making partnership firm as an accused in complaint
HIGH COURT OF MADRAS
Rangabashyam Vs. Ramesh
Section 138, read with section 141 of the Negotiable Instruments Act, 1881 - Dishonour of cheque for insufficiency of fund etc. - Respondent filed a complaint under section 138 against petitioners, alleging that cheque issued by petitioners towards discharge of retirement dues had been dishonoured due to insufficiency of funds - Petitioners sought to quash proceedings primarily on ground that cheque in question was drawn in favour of respondent only on behalf of partnership firm and therefore, complaint could not be maintained without issuing statutory notice to partnership firm and making partnership firm as an accused in complaint - Respondent however submitted that partnership firm was not registered and therefore could not be made an accused - Whether registration or non-registration of partnership firm will have no bearing insofar as 141 is concerned
Held, yes
Whether in a cheque dishonour case involving a partnership firm, complaint cannot be maintained against partners of firm without making partnership firm as an accused in complaint
Held, yes
Whether therefore, where cheque was given in name of partnership firm and after cheque was dishonoured, no statutory notice was issued to partnership firm, and partnership firm was not made as accused in complaint, such a complaint was not in consonance with section 141 and hence would be not be sustainable
Held, yes [Paras 19 and 20]
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