138 Negotiable Instrument Act.

Mukul Aggarwal (Querist) 21 September 2009 This query is : Resolved
A cheque has been bounced due to incomplete signature as the same has been signed by one partner only.

whether in this case partnership firm is liable to be charged u/s. 138 NI Act.riven

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Raj Kumar Makkad (Expert) 21 September 2009
If the cheque was issued on behalf of partnership firm in discharge of its liability and only 1 partner by signing it has issued and the same has bounced, even then firm is liable, however, another partner in its personal capacity is not liable for any consequences.riven

RAKHI BUDHIRAJA ADVOCATE (Expert) 22 September 2009
I do agree with Mr. Makkad.riven

Adinath@Avinash Patil (Expert) 23 September 2009
Mr.Mukul,
Basic principle of N.I.Act sect.138 is if cheque should be returned in sufficient funds in account & other ground but incomplite signature or sibnature differs is not in the inrediant of 138 sectiion.
Hence firm is not liable under section 138 of n.i.Act.riven

Mukul Aggarwal (Querist) 23 September 2009
Thank You Mr. Patil.. As per recent judgment of the apex court firm is not liable for want of signature.riven

Ravi Arora (Expert) 23 September 2009
No if cheque is dishonored because of difference in drawerâ€™s signature â€“ court has to presume that cheque is received for discharge of any debt. Or liability. The question as to whether the accused had got criminal intention is a pure question of fact has to be decided on material to be collected plz see acc 2006 at page 19riven

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