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Our Legal Correspondent

Chennai, Sept 6

The Madras High Court quashed proceedings pending before the Judicial Magistrate-I, Erode, against partner of Techno Associates for alleged offence under Section 138 of the Negotiable Instruments Act (dishonour of cheque) as inclusion of person was an abuse of process of law in lower court.

Mr Justice R. Regupathi, while hearing a petition from Ms P. Snehalatha, praying for quashing proceedings, held that except the bald allegation that petitioner took active part in day-to-day business affairs, no substantive material had been made available. Even though the petitioner was a partner in a firm, there must be specific allegations and averments regarding the role played by her in such capacity.

Petitioner was first accused in CC No 777 of 2005 for offence. Second accused was the husband of the petitioner. Counsel for petitioner, Mr Aravind Subramanian, contended that the petitioner was a sleeping partner and in spite of clarification by way of reply to notice, it had been stated in complaint that she was a managing partner.

The cheque issued bore signature of the 2nd accused over rubber stamp with description ‘authorised signatory’. Without even impleading firm as one of the accused in case, simply acting on figment that the petitioner was the managing partner, proceedings had been initiated for no reason, but to harass her.

On behalf of respondent, it was submitted that under Section 141, every person who was in-charge of affairs of business of a firm, must be held liable for offence under Section 138.

The Judge held that without any substance and material, the petitioner had been impleaded in case. Proceedings against her in Judicial Magistrate Court were quashed.

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