R.M Diary Products (LLP) And 3 Others Vs State of U.P. and Another (Allahabad High Court)
Allahabad High Court has partially allowed an application under Section 482 of the Code of Criminal Procedure (Cr.P.C.), quashing the summoning order against several partners of R.M. Dairy Products LLP in a complaint filed under Section 138 of the Negotiable Instruments Act, 1881 (NI Act). The court ruled that only the Limited Liability Partnership (LLP) and its authorized signatory, who issued the dishonoured cheque, can be held liable, emphasizing the need for specific averments in complaints against individuals in such cases.
The application, filed by R.M. Dairy Products (LLP) and three other individuals, challenged a summoning order dated September 21, 2022, issued by a Special Chief Judicial Magistrate in Agra. The complaint, lodged by M/s Bansal Payal Jewels, accused M/s R.M. Dairy Products and its partners of an offence under Section 138 of the NI Act following the dishonour of a cheque worth Rs. 15 lakhs.
Background of the Complaint
According to the complaint, M/s Bansal Payal Jewels, a jewellery and ornament firm, had a prior acquaintance with a director of M/s R.M. Dairy Products. On May 5, 2022, jewellery worth Rs. 15 lakhs was purchased on credit. In discharge of this liability, Mr. Ravi Singhal, identified as both a Director and “authorized signatory” of M/s R.M. Dairy Products LLP, issued a cheque from the company’s Punjab National Bank account for the same amount on August 5, 2022.
