Wednesday, December 21, 2016

No dismissal of cheque bouncing complaint just because it is filed by partner in individual capacity

The Complainant, a partner in a firm has filed the complaint for dishonouring of cheque undersection 138 of the Negotiable Instrument Act. He filled the complaint in his individual capacity/ status without affixing seal or rubber stamp of partnership firm.Trial court dismissed thecomplaint filed by the complainant on the ground that he had not satisfied eligibility criteria and singed the complaint in individual capacity.

The High Court held thatTrial Court erred in holding that complainant had not guilty for offence under section 138 of Negotiable Instrument Act. An opportunity has to be provided to complainant to file unregistered partnership deed and matter has to be remanded to trial court for fresh consideration. [2016] 76 taxmann.com 255 (Madras)

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