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2020 (12) TMI 1000 - MADRAS HIGH COURTDishonor of Cheque - insufficiency of funds - difference between a "firm" and a proprietary concern - HELD THAT:- In this case, A1 M/s.Varshini Traders is a Proprietorship concern, A2 N.Jai Ganeshen is the Proprietor of A1 and A3 is the wife of A2. A proprietary concern is not a firm. A firm is a partnership concern consisting of partners. In this case, the first accused is not a firm. It is only a proprietary concern. Only the drawer of the cheque can be prosecuted. In this case, the drawer of the cheques is A2 - Further, there is a basic and fundamental difference between a "firm" and a proprietary concern. The first accused is only a Proprietary concern, its proprietor being A2 N.Jai Ganeshen. A1 and A2 are one and the same person. The issuance of the cheque by A2 as Proprietor of A1 M/s.Varshini Traders would amount to issuance of the cheque by A2. The complaint of the respondent is not maintainable against A3. On the ground that A1 and A2 are same persons and that A1 is not a "firm" as per Section 141 of the Negotiable Instruments Act - Petition allowed.
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