Responsibilty of partners when cheque dishonored
TRIBHUVAN PUROHIT
(Querist) 08 October 2011
This query is : Resolved
Sir,
A Partnership concern having 4 partners, having proportionate shares and also all partners having rights that anyone can sign the cheque as per agreement.
1 parter has signed the all the cheques of transaction with one party being all dishonored and the case was filed u/s 138.
I would like to know what is the Responsibility/ Liability of other partners when this happens.
Please provide me sections in depth in both civil and criminal law.
Awaiting best detailed reply.
Thanking you,
TRIBHUVAN PUROHIT
kuldeep kumar
(Expert) 08 October 2011
partners having rights that anyone can sign the cheque as per agreement. U ALL ARE RESPONSIBLE FOR PARTNERSHIP IS MUTUAL AGENCY AND EVERY PARTNER HAV IMPLIED AUTHOIRTY.
ajay sethi
(Expert) 08 October 2011
your partnership deed is clear . all partners have equal shares all have authority to sign cheques .
in case of dishonour all partners would be liable
Sankaranarayanan
(Expert) 08 October 2011
yes absolutely i agreed with all experts suggestion and opinion , All are liable for that.
Advocate Bhartesh goyal
(Expert) 08 October 2011
In civil case all the partners are liable jointely and severally but in cheque bouncing case the partner who signed the cheque is liable for consequences.
ajay kumar mishra
(Expert) 08 October 2011
First of all you have to see that the signatory of the cheque has issued the cheque in the capacity of partner of the partnership firm or he has signed the said cheque with individual capacity. If he signed the cheque as a partner then all partner will be responsible for the said dishonoured cheque but if he has signed the cheque with individual capacity then he will be sole responsible for the said cheque.
prabhakar singh
(Expert) 08 October 2011
I am afraid none except Expert Advocate Bhartesh goyal has correctly opined.
civil liability is joint and several where all partners can be sued and money can be realized not from only firms assets but also from their personal assets.
BUT AS REGARDS TO LIABILITY UNDER SECTION 138OF NEGOTIABLE INSTRUMENT ACT ONLY THE PARTNER WHO HAS SIGNED THE CHEQUE WOULD BE DEEMED TO HAVE COMMITTED THE OFFENSE NONE ELSE AT ALL.
ajay sethi
(Expert) 08 October 2011
mr prabhakar singh
please find judgement refernce
Negotiable Instruments Act, 1881, Ss.138 and 141 - Dishonour of Cheque - Complaint against firm and its five partners - Averment in complaint that all the partners were incharge and responsible persons of the firm - No ground made out to quash the proceedings. (Luxmi Devi Vs Puran Chand) 2007(1) Civil Court Cases 026 (P&H) : 2007(1) Criminal Court Cases 033 (P&H)
Shastri J.K.
(Expert) 08 October 2011
I agree with mr.prabhakar singh.
prabhakar singh
(Expert) 08 October 2011
In view of the judgment referred to by Mr.Sethi which is binding on all of us i stand corrected that position of liability of partners even under section 138 NI Act would be same as is found in civil law.
I am sorry for any inconvenience caused to you all due to my view.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 08 October 2011
The liability of partners is vicarious and the citation referred by Mr Sethi is applicable only when no specific pleadings in the complaint.
If liability , knowledge and participation is shown all partners will be liable as per basic provisions of the NI act.
SC sabita case is landmark citation in the matter.
TRIBHUVAN PUROHIT
(Querist) 08 October 2011
Sirs,
I am very much tankful to all of you for replying.
If my case is filed under criminal law, partners having proportionate shares.
Can i recover the full amount from all the partners in full or to the extent of their proportion.
Also I am having view that if partners have jointly formed a firm and as per agreement they have allowed everyone to sign and issue cheque than all of them be made responsible to recover the bulk dues why only one person who signed the cheque.
He should be treated seperately for his wrongdoings by duping his other partners.
Kindly have your clear view, if possible provide with sections under criminal law to treat the same.
Thanking you,
kuldeep kumar
(Expert) 08 October 2011
in ur query constructive res judicata is applied..
