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Judgement |
| NEGOTIABLE INSTRUMENTS ACT, 1885 |
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| NEGOTIABLE INSTRUMENTS ACT, 1885 |
NI Act — S 138 r/w 141 — Proceedings under — Challenge only on the ground of not joining the partnership firm of the petitioner in the proceedings launched against the petitioner— Held, once the company is held to be essential party and that arraigning of a company as an accused is imperative for prosecution u/s 141 — it necessarily follows that arraigning of a partnership firm is also imperative for prosecution against the partners — The prosecution launched against only one of the partners of the partnership firm — without joining the partnership firm, cannot be maintainable — process issued against the petitioner quashed and set aside. (Para 16) |
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| NEGOTIABLE INSTRUMENTS ACT, 1885 |
Interpretation of Statute — NI Act — word ‘Company’ — Interpretation of — Section 141 Explanation (a) — abundantly makes it clear that the word "company" used in the said section is not confined in its application only to the company registered under the Companies Act, but also to the body corporate and specifically includes a firm or other association of individuals. (Para 7) |
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| NEGOTIABLE INSTRUMENTS ACT, 1885 |
Interpretation of Statute — NI Act — S 141 Explanation (b) — the director in relation to a firm means a partner in the firm. (Para 7) |
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| NEGOTIABLE INSTRUMENTS ACT, 1885 |
Interpretation of Statute — Intention of legislature — NI Act — S 141 — Legislature is not leaving it to the imagination or discretion of either the litigating parties — or to the court — to decide whether the partnership firm is included in the word "company" and whether the word "director" can be used in relation to a partner in the firm — section 141 of the NI Act clearly applies not only to the company, but also to the partnership firm when the offences are committed by a company or a partnership firm — as may be the case. (Para 7) |
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| NEGOTIABLE INSTRUMENTS ACT, 1885 |
NI Act — S 141 — Ambit of — For maintaining the prosecution against the director — arraigning of a company as an accused is imperative — this legal position needs to be automatically made applicable in case of prosecution against a partnership firm also — Held, for maintaining prosecution against a partner under section 141 — arraigning of partnership firm as an accused is imperative. (Para 9) |
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| NEGOTIABLE INSTRUMENTS ACT, 1885 |
Law of trots — Vicarious liability — Principle of — NI Act — S 141 —Scope — The section deals with vicarious liability — commission of offence by a company is an express condition precedent to attract vicarious liability of others — the words "as well as the company" appearing in the section make it absolutely unmistakably clear that when a company is prosecuted, then only the persons mentioned in the other categories could be vicariously liable for the offence subject to the averments in the petition and proof thereof— Other categories of offenders like directors or partners of the firm can only be brought in the dragnet on the touchstone of vicarious liability as the same has been stipulated in the provision itself— Aneeta Hada vs. Godfather Travels & Tours Private Limited ; ABC 2012(I)360 SC — referred. (Para 13) |
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| NEGOTIABLE INSTRUMENTS ACT, 1885 |
Law of trots — Vicarious liability — Principle of — NI Act — S 141 — Prosecution under — Arraigning of the company as an accused — is imperative, mainly and mostly on the basis of the vicarious liability of the directors of the company — and not necessarily because the company is a juristic person and it has its own respectibility. (Para 14) |
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| NEGOTIABLE INSTRUMENTS ACT, 1885 |
Law of trots — Vicarious liability — Principle of — NI Act — S 141 — Prosecution of company under —Main basis for — vicarious liability which the directors or partners of the firm can have towards the company — hence without joining the company on the touch-stone of vicarious liability they cannot be prosecuted. (Para 14) |
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| NEGOTIABLE INSTRUMENTS ACT, 1885 |
NI Act — S 141 — Prosecution against a partnership firm vis-a-vis company — Held, there is no reason at all to make any distinction in respect of the law to be made applicable to partnership firm and the company — a partner of the firm is arraigned as an accused in the dragnet on the touchstone of vicarious liability, as is done in the case of directors of the company. (Para 15) |
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| NEGOTIABLE INSTRUMENTS ACT, 1885 |
Interpretation of Statute — Intention of legislature — NI Act — S 141 — Word ‘Company’ — Scope of — Held, the company includes any body corporate which includes firm or other association of individuals and director in relation to a firm means a partner in the firm. (Para 16) |
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