Liability of a partner

Querist : Anonymous (Querist) 28 May 2010 This query is : Resolved
a sole proprietorship business unit was converted in a partnership firm since the individual had suffered serious financial problems.Now the firm is facing criminal cases over bouncing of cheques issued by the individual when it was a sole proprietorship firm. Does the newcomer (Junior partner) become a party to such criminal act of bouncing of cheque issued by the individual in the name of the firm ? The name of the firm whether under sole proprietorship of partnership remains same. DNUpadhyay

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Raj Kumar Makkad (Expert) 28 May 2010
No. Such newly induced partner is not responsible for any act of the sole proprietor and thus he cannot be indulged in criminal case of bouncing of cheque.

Raj Kumar Makkad (Expert) 28 May 2010
There is no impact over newly introduced person as partner in the business even if name of firm remains same. It can safely can be proved that he joined the firm on such and such date whereas the cheque belongs to sole proprietorship business duly owned by senior partner (at present)so junior person do not have any liability towards any act of earlier person or era.

Surrender K Singal (Expert) 28 May 2010
Issuer of the bounced cheque has prime responsibility u/s 138 of N I ACT and moreover the junior partner would have joined the partnership after the issue of impugned cheque; Therefore, he would not be in the know of such issue of cheque before his joining the partnership; Even the signatory proprietor would have signed the cheques as PROPRIETOR and thus no concern with the new partnership entity !
Jai Shree Ram !!

G. ARAVINTHAN (Expert) 28 May 2010
New partner cannot be made liable for the problems, debts which occurred before he be a partner in the firm

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