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V NAGARAJA SARMA (Superintendent (Retired) II AJFCM. Court Kadapa)     29 September 2017

Clarification of doubt in complaint u/s 138 of ni act

A complaint u/s. 138 r/w. 142 of NI Act filed by Govt., Finance Corpn., against a Firm (for which the corporation financed) in respect of Dishonoured Cheque issued by the Proprietor of the Firm, without showing the Proprietory Firm as A.1, and the proprietory who cheque as A.2. The Supdt., of the Court took objection "Explain how the complaint is maintainable without showing the Proprietory Firm as A.1 and the Proprietory who singed on the Cheque as A.2.  For that, it was endorsed on the complaint that in respect of Proprietory Firm, there is no necessity to show the Proprietory Firm as A.1, and the Propritetor who signed on the cheque as A.2, reoresebted tge cinokaubtm duly enclosing a judgment wherein the Proprietor of the firm who issued cheque died, the complaint was filed against L.Rs., of the Proprietory who issued cheque infavour of the complainant.  The L.Rs., of the deceased Proprietor appraoched high court and obtained orders quashing proceedings against L.Rs., Is that Judgment is applicable, the complaint is maintainable without showing the Proprietory Firm as A.1, and the Proprietory who signed on the Cheque as A.2. Reply is solicited

SARMA, Superintendent of Criminal Court

 



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 1 Replies

R Trivedi (advocate.dma@gmail.com)     30 September 2017

Proprietary firm is not a 'person' as per general clause act, so A1 need not be there as accused. But in general mostly both the firm and its proprietor are impleaded. In this case if the descripttion of A2 is right, that is A2 is shown as the proprietor of the firm A1, then there is no infirmity in the complaint. To me it appears that citation judgement as shown above is not applicable under the circumstances, but no citation is required, a reference to general clause act is sufficient.
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