How cheque legaly endorsed

umesh kumar singh (Querist) 27 May 2012 This query is : Resolved
A partnership deed was re-contituted under which A incoming partner has to pay Outgoing partner but incoming partner has given a cheque of Third party without making any endorsement/agreement/consent of letter from Cheque holder The cheque was dishonoured and outgoing partner has issued notice for payment of cheque to cheque holder not to incoming partner from whom he legaly receiveable the share amount and Cheque holder has denied the same hence is this case under Section NI Act is rebutable under section 118a & 139
In this case court how pressumed that accused would have issued cheque when He has not made party from whom he was legaly receiveavble the ashare amount

Kindly Clarify
UK Singh

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DEFENSE ADVOCATE.-firmaction@g (Expert) 27 May 2012
The drawer is also legally liable .

Raj Kumar Makkad (Expert) 27 May 2012
In the given case, there is not lawfully enforced liability of the accused towards the complainant so the complaint shall be duly dismissed on this ground, however, the complainant reserves his right to initiate criminal action under section 420 IPC against the outgoing partner who had given such cheque deliberately to him without having obtained any consent of the issuer of the cheque.

Nadeem Qureshi (Expert) 27 May 2012
agree with experts

Rajeev Kumar (Expert) 27 May 2012
Agree with our learned experts.

R Trivedi (Expert) 28 May 2012
There must have been some agreement between incoming partner and outgoing partner. One aspect of agreement simply would be that incoming partner shall pay X amount for the entire/part share of the outgoing partner. That X amount (or part of it) must have been the cheque value.

If the cheque has got bounced, there is no liability as far as incoming partner is concerned, but the partnership transfer agreement gets void.

The point is if this cheque finds no endorsement and no mention in the transfer agreement, then it can be prima facie treated as cheque issued by drawer to the outgoing partner, matter is complicated, ideally the outgoing partner who was in possession of this cheque earlier must take up the matter with the drawer of the cheque to resolve the issue.

R Trivedi (Expert) 28 May 2012
Negotiable Instrument can be negotiated with endorsement any number of times during its validity (normally it is not done in case of cheques), as per law there is no need for consent of previous parties, but in case of dishonor, if any in between holder does not indemnify any previous party, then all previous parties are legally liable for dishonor.