Partners Not Separate From Firm; Partners Not Distinct From Firm; Sleeping Partners Also Liable: Allahabad HC

The Allahabad High Court has ruled that partners of a firm bear joint and several liability for cheque dishonour cases under the Negotiable Instruments Act.

Thus, dismissing two connected petitions filed u/s 482 CrPC (Section 528 BNSS), the court refused to quash the proceedings in two Criminal Complaint Cases filed under Section 138 r/w Section 141 NI Act.

The court emphasized that all partners are collectively and individually responsible for the firm's financial obligations, allowing complainants to proceed against any or all partners for recovery in cheque bounce cases.

Thus, the applications under Section 482 CrPC were dismissed. The NI Act proceedings before the ACJM, Unnao will continue against all accused, including the sleeping partners.

[Sonali Verma And Another vs. State Of U.P. Thru. Its Addl. Chief Secy.]