Legal Question in Banking Law in India

liability under 138 read with sec142 of NI Act

I was a partner of a firm without power to operate Bank account which was cash credit. The firm's cheque signed by another partner was returned dishonoured for want of funds.

The supplier to whom the cheque had been issued, has filed complaint against the firm and me without including other partners including the one who actually signed, probably under the impression that I had signed as I was transacting with him on firm's behalf. Kindly advise me whether his complaint is maintainable against me.Neither I can pay as the firm is closed and I am now bankrupt though not declared insolvent.


Asked on 6/15/06, 12:12 pm

2 Answers from Attorneys
BANKIMCHANDRA SHAH ADVOCATE DIGVIJAYA CONSULTANCY SERVICES

Re: liability under 138 read with sec142 of NI Act

No he can not claim from you under section 138

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Answered on 6/15/06, 10:24 pm
Vivek Mapara Mapara Law Firm

Re: liability under 138 read with sec142 of NI Act

Sir,

You need to prove in court, that ur sleeping partner of firm, and all cheque transaction was done by other partner, who was all responsible for bounsing the cheque, and u had no idea about it, then only u will be able to escape the penal liability.

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Answered on 6/16/06, 3:15 pm


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