In Brief
Norton Granites sold land to a partnership firm. Years later, when a cheque for alleged pending sale consideration dishonoured, the firm's managing partner was prosecuted. During trial, it emerged the cheque was drawn on a company account (where the partner was a director). The respondent then sought to implead the company as an accused under Section 319 CrPC—three years after dishonour. The Supreme Court held this impermissible: Section 142 of the Negotiable Instruments Act prescribes a mandatory one-month limitation for complaints. When a company draws a cheque, both the company and responsible persons must be prosecuted together. Impleading the company later was an impermissible device to circumvent statutory limitation. The appeal was allowed, setting aside the lower courts' orders.
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