SC held that mere resignation or internal partnership agreement ...

Partner's Resignation Doesn't Automatically Absolve Liability for Cheque Dishonor Under Negotiable Instruments Act Section 141

May 21, 2025

Case Laws Indian Laws SC

SC held that mere resignation or internal partnership agreement does not legally discharge a partner's liability under the Negotiable Instruments Act. Statutory requirements mandating registration of partner changes with the Registrar of Firms were not followed. The partner remained liable for cheque dishonor, particularly given involvement in firm's daily operations and participation in cheque issuance. The HC's order was set aside, and the trial court proceedings were restored for further adjudication in accordance with legal provisions governing partnership firms and cheque-related offenses.

View Source

← Previous Next →

SC held that mere resignation or internal partnership agreement ...

Partner's Resignation Doesn't Automatically Absolve Liability for Cheque Dishonor Under Negotiable Instruments Act Section 141

May 21, 2025

Case Laws Indian Laws SC

You may also like:

The HC affirmed the vicarious liability of the petitioner under Section 138 read with Section 141 of the NI Act for dishonored cheques. As a whole-time director and...

Dishonour of Cheque - vicarious liability of the director - The Court found that, the resignation of the directors, as recorded in Form 32, indicates their...

Dishonour of Cheque - vicarious liability of director - The petitioners argued that they had resigned from their directorship well before the cheque was issued and could...

Dishonour of Cheque - vicarious liability of Director - resignation on the date of issuance of cheques in dispute - this Court, at this stage, cannot come to a...

Dishonour of Cheque - Vicarious liability - petitioner is an Independent Non-Executive Director - - the petitioner was appointed as Additional Director and resigned as...

Dishonour of cheque - vicarious liability in criminal law - The SC interpreted Section 7 of the NI Act to identify the "drawer" as the individual issuing the cheque,...

Dishonor of Cheque - drawer of cheque - Vicarious liability - From the bare reading of Section 138 of the N.I. Act, it transpires that the liability of the drawer of the...

Dishonor of cheque - presumption that cheque was issued in discharge of legal liability, burden on accused to prove contrary. Supreme Court observations: While deciding...

Dishonour of Cheque - Seeking setting aside of summoning order - vicarious liability on partner of a firm - The name of the petitioner is conspicuously not mentioned as...

Dishonor of Cheque - Different cheques, may be issued for discharging the liability, arising out of one and same transaction, are separate entities and dishonour of each...

Dishonor of Cheque - vicarious liability can be fastened on the partner of the firm or not - When in view of the basic averment process is issued the complaint must...

Dishonor of Cheque - Insufficient Funds - Since, the drawer of the cheque was the accused Company, solely on the ground that the respondent had signed the cheque, a...

Dishonor of Cheque - signing of cheque jointly - vicarious liability u/s 141 of NI Act - True it is that in the case at hand, cheque in question has been signed by...

Dishonour of Cheque - liability created in favour of the Complainant by the Accused or not - MoU between the manufacturer and the retailer - The retailer issued multiple...

Dishonour of Cheque - vicarious liability of director - cheque was issued prior to the date of director joining the company - The petitioners have failed to bring on...

Quick Updates: