Allow Cookies!
By using our website, you agree to the use of cookies
In the matter of G. Ramesh vs. Kanike Harish Kumar Ujwal the Hon’ble SC has laid down the observation that “the expression ‘company’ used in Section 141 of the Negotiable Instruments Act includes a partnership firm or association of persons”. The above said observation came in current case where the first accused was a partnership firm named Vainqueur Corporate Services which was dealing in data entry work and the other two accused in the case were its partners. The High Court in its earlier decision had quashed the complaint against one of the partners on the ground there was no averment in the complaint that he was in-charge of and was responsible to the "company" for the conduct of the business. The high court in the matter had held a view that the averments contained complaint were not sufficient to implicate criminal liability upon the partner for an offence punishable under Section 138 NI Act.
The Section 141(1) of the N.I. Act reads as follows : “ If the person committing an offence under section 138 is a company, every person who, at the time the offence was committed, was in charge of, and was responsible to the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:”
The apex court division bench after hearing the counsels disagreed with the HC’s view and observed that "\ complaint contains a sufficient description of the role of each of the accused in the conduct of the business and, specifically, in relation to the transactions which took place with the complainant. The accused in the complaint have been referred to in the plural sense and the specific role of each of them in the act which ultimately led to the dishonor of the cheques, has been elucidated."The court ultimately while deviating from the opinion of HC observed that "Section 141 undoubtedly uses the expression "company" so as to include a firm or association of persons. The fact that the first accused, in the present case, is a partnership firm of which the remaining two accused are partners has been missed by the High Court.” Thereby allowed the petition and Held other two partners of the firm as also to be accused under the NI Act.
86540
103860
630
114
59824