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Punjab and Haryana High Court
Decided on: 20.12.2022

Negotiable Instruments Act, 1881 (26 of 1881), Section 138, 141 – Code of Criminal Procedure, 1973 (2 of 1974), Section 482 – Cheque bounce case – Partnership firm not arrayed as an accused – Quashing of complaint u/s 138 of N. I. Act -- Cheque in question bears signature of the petitioner being authorized signatory of partnership firm -- The expression ‘company’ also includes a firm, as is provided in Explanation to Section 141 of the Act – There cannot be any vicarious liability of the partner of a partnership firm unless there is a prosecution against the partnership firm -- Thus, the complaint filed by the respondent is not maintainable and it is bad in law and entire proceedings in pursuance thereof are nothing but an abuse of process of the Court and are liable to the quashed -- Petition allowed and criminal complaint, summoning order and the order passed by the Revisional Court and all the subsequent proceedings arising therefrom quashed.

(Para 11-18)

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