DHANASINGH PRABHU versus CHANDRASEKAR & ANOTHER

DHANASINGH PRABHU versus CHANDRASEKAR & ANOTHER

The High Court erred in quashing the complaint for non-impleadment of the partnership firm or non-issuance of notice to it; because a partnership firm is a compendious name for its partners and partners are jointly and severally liable, notice to and prosecution of the partners suffices and any defect can be cured by permitting impleadment of the firm; accordingly the High Court order was set aside and the complaint restored with permission to arraign the firm.

Parties
Appellant: Dhanasingh Prabhu; Respondent: Chandrasekar & Another
Jurisdiction
India
Judgment Date
14 July 2025
Procedural Posture
Criminal Appeal / Decided on Appeal by Supreme Court (judgment)
Outcome
Appeal allowed
Legal Topics
Section 138 NI Act, Section 141 NI Act, Liability of Partners, Separate Legal Entity Vs Firm, Statutory Notice Under S.138, Arraignment of Firm as Accused
Negotiable Instruments Act Partnership Law Criminal Law Section 138 NI Act Section 141 NI Act Liability of Partners Separate Legal Entity Vs Firm Statutory Notice Under S.138 +1 more

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Parties

Dhanasingh Prabhu

Appellant

Chandrasekar & Another

Respondent

Procedural Posture

Criminal Appeal / Decided on Appeal by Supreme Court (judgment)

Legal Issues

  1. 1 Whether the High Court was right in dismissing the complaint because the partnership firm was not named in the statutory notice under Section 138 and was not arraigned as an accused
  2. 2 What order should be made in view of the above

Ratio Decidendi

The High Court erred in quashing the complaint for non-impleadment of the partnership firm or non-issuance of notice to it; because a partnership firm is a compendious name for its partners and partners are jointly and severally liable, notice to and prosecution of the partners suffices and any defect can be cured by permitting impleadment of the firm; accordingly the High Court order was set aside and the complaint restored with permission to arraign the firm.

Court Disposition

Appeal allowed

Orders

  • Impugned High Court order dated 26.02.2024 set aside
  • Complaint bearing STC No.1106/2022 restored to the file of the Judicial Magistrate No. II, Pollachi