Welcome back to Caseon!
Log in today and discover expertly curated legal audios and how our AI-powered, tailor-made responses can empower you to navigate the complexities of your case.
Stay ahead of the curve—don’t miss out on the insights that could transform your legal practice!
As per case facts a complainant advanced a loan to a partnership firm and one partner issued a cheque in the firm's name which was later dishonoured due to the
...account being frozen The complainant then filed a criminal complaint against both partners individually after issuing a statutory notice to them but without naming the partnership firm itself as an accused The High Court quashed the complaint arguing that the firm was neither issued the statutory notice nor arraigned as an accused thus violating Section of the NI Act leading to the complainant's appeal The question arose whether the prosecution of partners for an offense committed by a partnership firm under Section read with Section of the NI Act is maintainable if the partnership firm itself is not arrayed as an accused or is not served a separate statutory notice Finally the Supreme Court drawing a clear distinction between a company and a partnership firm held that a partnership firm is a compendious name for its partners with no separate legal existence Since the partners bear joint and several liability and the notice was served on both partners the complaint against the partners is maintainable The failure to implead the firm is a curable defect and not fatal thus restoring the complaint