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Supreme Court of India 2025-07-14 allowed

DHANASINGH PRABHU vs CHANDRASEKAR & ANOTHER

Bench: 2 — B.V. Nagarathna, Satish Chandra Sharma

In Brief

The Supreme Court held that partners of a partnership firm are jointly and severally liable for dishonoured cheques issued in the firm's name, even if the firm itself is not separately named as an accused or issued statutory notice. Unlike companies (which are separate legal entities), a partnership firm has no distinct legal persona apart from its partners—it is merely a collective name for them. Therefore, notice to partners constitutes notice to the firm, and a complaint against partners alone is maintainable. The Court set aside the High Court's order quashing the complaint and allowed the partners' prosecution to proceed.

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Criminal Law Negotiable Instruments Act Partnership Law Cheque Dishonour Vicarious Liability Company Law Statutory Interpretation Procedure Criminal Liability Joint and Several Liability

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