Dhanasingh Prabhu Vs Chandrasekar & Another (Supreme Court of India)
Supreme Court held that partners of the partnership firm can be prosecuted individually under section 138 of the Negotiable Instruments Act, 1881 [NI Act] without the partnership firm being arraigned as an accused. Accordingly, order of high court set aside.
Facts- Appellant has preferred the present criminal appeal being aggrieved by the final judgment and order of the Madras High Court dated 26.02.2024, whereby the High Court allowed the Criminal Original Petition preferred by the respondents-accused and thereby quashed Complaint filed by the appellant-complainant u/s. 138 of the Negotiable Instruments Act, 1881 against the respondents.
Our attention has been drawn to the uncontested fact that neither was the statutory notice issued to the partnership firm nor was the firm arraigned as an accused in the complaint. Instead, the statutory notice and the complaint mentioned the names of both the respondents who are the partners to the said firm.
Conclusion- Held that the High Court was not right in rejecting or dismissing the complaint for the reason that the partnership firm was not arraigned as an accused in the complaint or that notice had not been issued to it under Section 138 of the Act. In view of the aforesaid discussion, the notice issued to the partners of the firm in the instant case shall be construed to be a notice issued to the partnership firm also viz., ‘Mouriya Coirs’. Permission is granted to arraign the partnership firm as an accused in the complaint. Consequently, the impugned order of the High Court is set aside.
