In Brief
Dilip Hariramani, a partner in a partnership firm M/s. Global Packaging, was convicted along with the authorized signatory under Section 138 read with Section 141 of the Negotiable Instruments Act for dishonoured cheques issued by the firm in repayment of a bank loan. The Supreme Court set aside his conviction, holding that a partner cannot be convicted on mere partnership status or as a guarantor. Vicarious liability under Section 141 requires proof that the partner was in overall control of the firm's day-to-day business and arises only when the firm is the primary offender. Without such evidence and without the firm being made an accused, the conviction was unsustainable. The appellant was acquitted.
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