In Brief
A partner of a partnership firm was convicted under the Negotiable Instruments Act, 1881 for cheques dishonoured by the firm. The Supreme Court acquitted him, holding that a partner cannot be prosecuted for an offence under Section 138 merely because the firm issued dishonoured cheques. Vicarious liability under Section 141 requires evidence that the person was in overall control of the firm's day-to-day business, or that the offence was committed with the person's consent, connivance, or due to the person's neglect. The Court ruled that the firm itself must be made an accused and tried as the principal offender; civil liability from partnership status cannot ground criminal vicarious liability.
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