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Mrs.N.Praveena vs / on 22 September, 2022

2. A short point involved in this case is that whether the third parties though related to the signatory of the cheque can be roped in the complaint filed under Section 138 of the Negotiable Instruments Act, 1881. Based on the cheque drawn by the account maintained by the proprietary concern and signed by the proprietary, this issue has already been settled by the judgments of the Hon'ble Apex Court as well as this Court (i) Milind Shripad Chandurkar v. Kalim M.Khan and others reported in [AIR Page No.2/7 https://www.mhc.tn.gov.in/judis Crl.O.P.No.14679 of 2019 and Crl.M.P.No.7186 of 2019 2011 SC 1588]; (ii) Nagarajan v. K.Murugesan reported in [2017 SCC online Mad 14476]; (iii) P.V.Selvaraj v. Thirupura Chits Private Limited reported in [2020 SCC Online Mad 8596]; (iv) N.Backiya Lakshmi v. Palanivel reported in [2017 SCC Online Mad 24066] and (V)Rahul Sudhakar Anantwar v. Shivakumar Kanhiyalal Shrivastav reported in [(2019)10 SCC 203] that the principle of vicariously liable has found in Section 141 of the Negotiable Instruments Act, 1881 for the offence committed by the Company cannot be applied to the proprietary firm since the proprietary firm is not a jurisdictional body unlike company. Therefore, the case filed under Section 138 of the Negotiable Instruments Act, 1881 on the cheque issued by a Firm, the signatory of the cheque alone can be held liable for prosecution or if it is a partnership firm, the other partners should have knowledge and participated in the affairs of the partnership firm and be roped him as an accused.
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