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Dishonour Of Cheque: Complaint Against Partnership Firm Not Maintainable Without Making The Firm An Accused

In CRL.O.P No.13147 of 2015 and Crl.M.P.Nos.1 and 2 of 2015, Rangabashyam vs Ramesh, the question before the Madras High Court involved in this case is whether an unregistered Partnership Firm can also be brought within the purview of Section 141 of the Negotiable Instruments Act, and in such cases whether the Partnership Firm must be made as an accused along with the other partners, in order to maintain a complaint for an offence under Section 138 of the Negotiable Instruments Act ?

The respondent has filed a complaint against the petitioners for an offence under Section 138 of the Negotiable Instruments Act for a cheque issued by the petitioners. The petitioners applied to quash the proceedings primarily on the ground that the cheque in question was drawn in favour of the respondent only on behalf of the partnership firm. Therefore, the complaint cannot be maintained without issuing the statutory notice to the partnership firm and making the partnership firm as an accused in the complaint.

Relying on the ruling of the Supreme Court in Aneeta Hada v. Godfather Travels and Tours Private Limited, 2012(5) SCC 661, the Madras High Court held that a partnership firm can also be brought within the purview of Section 141 of the Act, and in such cases the firm must be made as an accused along with the other partners, in order to maintain a complaint for an offence under Section 138 of the Act. The court also agreed with the contentions of the Petitioners with regard to Section 69(2) of the Act. Accordingly, the court in exercise of its powers under Section 482 of Cr.P.C. quashed the criminal original petition.

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