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As per the case facts a dairy supplier appellant filed a criminal complaint against a partnership firm and its partners after a cheque issued by the firm for products purchased
...on credit was dishonored due to insufficient funds One partner respondent sought to quash the proceedings in the High Court arguing the firm was dissolved before the cheque was issued The High Court allowed her application and quashed the proceedings which led to this appeal to the Supreme Court The question arose whether the High Court was justified in quashing the criminal proceedings against the partner when the complaint was filed under the Negotiable Instruments Act Finally the Supreme Court determined that the High Court was not justified in quashing the criminal proceedings It reiterated that while a complaint against a dissolved company might become infructuous proceedings against partners under Section of the NI Act can continue as partners are jointly and severally liable The Court emphasized that to quash a criminal proceeding there must be clear undeniable evidence or circumstances showing that facing a trial would be an abuse of the court's process Since the High Court failed to provide adequate reasons to establish such circumstances its order was set aside and the criminal proceedings against the respondent were reinstated