Case Note & Summary
The petitioner, Smt. K. Surekha, was a partner of a firm. The respondent, A. Santosh Kumar, filed a private complaint under Section 138 of the Negotiable Instruments Act, 1881 against the firm and its partners, including the petitioner, alleging dishonour of a cheque. The learned Civil Judge and JMFC, Siruguppa took cognizance of the offence and issued process against the accused. The petitioner filed a petition under Section 482 Cr.P.C. seeking quashing of the order taking cognizance and all further proceedings in CC No.1104/2015. The High Court examined the complaint and found that there were no specific allegations against the petitioner regarding her role in the issuance of the cheque or that she was in charge of and responsible for the conduct of the business of the firm. The Court held that in the absence of such specific averments, the proceedings against the petitioner could not be sustained and were liable to be quashed to prevent abuse of process of law. The petition was allowed and the proceedings against the petitioner were quashed.
Headnote
A) Criminal Law - Negotiable Instruments Act - Section 138 - Dishonour of Cheque - Vicarious Liability of Partner - Quashing of Proceedings - The petitioner, a partner of a firm, sought quashing of proceedings under Section 138 NI Act on the ground that the complaint did not contain any specific allegations against her regarding the issuance of the cheque. The High Court held that in the absence of specific averments that the partner was in charge of and responsible for the conduct of the business of the firm, the proceedings against her are liable to be quashed. (Paras 1-5) B) Criminal Procedure Code - Section 482 - Inherent Powers - Quashing of Criminal Proceedings - The High Court exercised its inherent powers under Section 482 Cr.P.C. to quash the proceedings against the petitioner as the continuation of the proceedings would be an abuse of process of law. (Para 5)
Issue of Consideration
Whether criminal proceedings under Section 138 of the Negotiable Instruments Act, 1881 can be sustained against a partner of a firm in the absence of specific allegations regarding her role in the issuance of the cheque.
Final Decision
The petition is allowed. The order dated 20.10.2015 passed by the Court of Civil Judge and JMFC, Siruguppa in CC No.1104/2015 (PC No.84/2015) taking cognizance of the offence under Section 138 of the Negotiable Instruments Act, 1881 against the petitioner and all further proceedings in CC No.1104/2015 pending on the file of the Civil Judge and JMFC, Siruguppa are quashed insofar as the petitioner is concerned.
Law Points
- Section 138 of Negotiable Instruments Act
- 1881
- vicarious liability of partners
- quashing of criminal proceedings under Section 482 Cr.P.C.
- requirement of specific allegations against accused
