quashing of case u/s.482
abdul rahaman
(Querist) 22 November 2009
This query is : Resolved
If a firm is not registered as per sec69(2) of Indian partnership act 1932,
can a criminal case filed by such un-registered firm for breach of trust ,Mis-approprition of funds,etc by it's agents and third parties can be quashed u/s.482
A V Vishal
(Expert) 22 November 2009
NON-REGISTRATION OF THE PARTNERSHIP FIRM HAS NO LEGAL BEARING ON THE CRIMINAL CASE
So far as a partnership firm is concerned, its rights would depend upon its legal status. In a recent case, the Karnataka High Court considered this issue in the case of a complaint filed by an unregistered firm Beacon Industries v Anupam Ghosh [49] . After receipt of the complaint filed by Beacon (revision petitioner in the aforesaid case), the Trial Court at Bangalore dismissed the complaint by holding that there was a bar under section 69 of the Act and that an unregistered firm could not prosecute any person or a firm.
The High Court observed that even a plain reading of section 69(2) of the Act, left no scope for doubt that what was barred by the said section was the institution of a suit. The court further observed that enforcing a right arising from a contract or conferred by the Act and suing, as a partner in a firm against the firm or any partner in the firm would not be possible unless the firm was registered firm.
The High Court remarked that a careful reading of section 69(2) of the Act clearly showed that an unregistered partnership firm was barred from filing a civil suit, while there was no such bar so far as filing of a private complaint was concerned.
The Court noted that in the case of a bounced cheque, there was purely criminal liability on the part of the person who had issued the cheque. The Court held that even if the cheque had been issued by a partner of an unregistered firm for a legally recoverable debt and if such a cheque was dishonoured, it would amount to a criminal liability.
Thus the contract by the unregistered firm referred to in section 69(2) must not only be one entered into between the firm and the third party-defendant but must also be one entered into by the plaintiff firm in the course of the business dealings of the plaintiff’s firm with such third party-defendant [50] .
Sachin Bhatia
(Expert) 22 November 2009
Yes a non registered firm can file a criminal case, there is no barrier in any event.
dhiraj choudhary
(Expert) 22 November 2009
not even in criminal case but the s.c in a recent judgment which i read in newspaper held that in some cases civil cases too can be filed by partner of unregistered firm
Raj Kumar Makkad
(Expert) 22 November 2009
Even if the firm is not registered then how an accused got a license to breach the trust as per provisions of Indian Penal Code. The act of the accused is to be taken into consideration not the status of the complainant in the criminal jurisprudence.
