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2017 (11) TMI 1996 - HC - Indian LawsDishonor of Cheque - insufficient funds - liability of signatory of firm as well as liability on the firm along with its partners - Section 141 of Negotiable Instruments Act - HELD THAT:- The Supreme Court in STANDARD CHARTERED BANK VERSUS STATE OF MAHARASHTRA AND ORS. ETC. [2016 (4) TMI 532 - SUPREME COURT] observed that an allegation in the complaint to the effect that the respondents being the Chairman, Managing Director, Executive Director and wholetime Director were and are the persons responsible and in charge of day-to-day business of Accused 1 viz. when the offence was committed is sufficient for prosecution of the respondents. However, in the present case, the allegation is that the firm along with its partners is responsible. Here there is no allegation that the applicants are in charge and responsible for day to day business of the firm. The basic allegation required for prosecuting the applicants is missing in the complaint and the applicants cannot be prosecuted merely because they are the partners in the firm - the complaint filed against the applicants under Section 138 of Negotiable Instruments Act is liable to be dismissed as it lacks basic allegation against the applicants. Application allowed.
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