Supreme Court’s view on partnership firm as one of accused in a cheque bounce case
Shubham Budhiraja [1] Mr. A advanced a loan of Rs. 21 lacs to the partnership firm (X+Y). To discharge the debt, X issued a cheque in favour of Mr. A of the account maintained in the name of partnership firm. The cheque was issued in the name of firm and signed by X, Partner. The cheque got dishonoured as account of firm was frozen. The notice was issued against X and Y and accordingly complaint under section 138 NI Act was filed against X and Y. Neither the notice was sent to firm not the firm was made as accused in the complaint. The Hon’ble HC quashed the complaint the ground that while the cheque was issued on behalf of the partnership firm, no statutory notice was issued to the partnership firm and it was also not arraigned as an accused in the complaint. The Hon’ble Supreme Court held as under [2] : 1. Even if we have to come to the conclusion that the juristic entity i.e., the partnership firm is the primary accused in the instant c...