Partners have burden of proof in cheque bouncing cases that they were not in charge of the daily affairs of the firm

Rallis India Ltd. Vs. Poduru Vidya Bhusan & Ors. (Supreme Court) When partners of a firm issue cheques which are dishonoured, it is presumed that they were responsible for issuing them unless they prove that they were not in charge of the daily affairs of the firm. They have to discharge the burden during the trial under the Negotiable Instruments Act, the Supreme Court stated in the case, Rallis India Ltd vs Poduru Vidya. In this case, the company filed criminal complaints against three partners. They denied responsibility arguing that they had resigned before the date of the cheques. Th...