Cheque Bounce: Supreme Court Says Partners Can Be Prosecuted Without Naming the Firm — A Landmark in NI Act Clarity
In a pivotal ruling, the Supreme Court has clarified that complaints under Section 138 of the Negotiable Instruments Act (NI Act) are maintainable against individual partners even if the partnership firm is not named as an accused. The judgment reaffirms the foundational principle that a firm is not a separate legal entity and partners are jointly and severally liable — providing a significant boost to creditors’ ability to recover dues and streamlining cheque bounce litigation.
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