Firm cheque misuse

Yes we already sent reply notice to the them. So, You mean to say that only the Retired Partner is liable & Punishable But not Other Partners of the firm? We are very much concerned because he gave our Firm Cheque & acknowledgement of Receiving Amount from that Third partyon the firm letterhead.

Apart from that what kind of legal action we need to take against him for misusing the firm Cheque? Thank You!

Issue notice to him for his mideamenor and to set right thins. Else file criminal complaint in court of law in the name of the firm.

Ok sir. Also we would like to know who is responsible for the loan amount he took on firm cheque? Do other members of the firm are also Liable to clear his Loan? Please suggest. Thank You!

You say it is a fraudulent act without knowledge of othr partners.If you have any.doubts, consilt lawyer to proceed against.

The facts are too complex to be opined in an online platform. The matter requires professional consultation.

1. First point is that the cheque was not bounced for want of funds.
2. Second, it is not issued by the firm (even fraudulently and unauthorisedly) for any consideration it received.  One of the Managing Directors issued it for consideration of his personal loan. His act is fraudulent.
3. The partnership firm has not availed any loan from the Third Party who issued the notice and therefore has no cause of action against the firm.
4. As per the Partnership Act, the Partners are liable jointly and severally for the debts of the Partnership firm. Partnership firm or its partners are in no way liable for any of their personal loans of any of the Partner/s.

Therefore, you may cause a proper reply issued through a competent and reliable Lawyer denying any liability and explaining the position of the Partnership firm.

You have no option but to contest / defend your case with facts and figures, if drawee of the cheque files a complaint case.

It is better to consult and engage a local prudent lawyer for better appreciation of facts/ documents, professional advise and necessary proceeding.

1) Partnership firm with 5 members & Its a Registered Firm. Only 2 are authorized to operate Everything & accounts jointly which is Clearly mentioned in the Partnership deed itself. One of them is Retired while he was One of the Managing Partner of the Firm.

2) Retired Misused the Cheque after his Retirement. He is neither entitled to operate cheque or any other document related to Firm solely Even Before his Retirement.

So, Why other 4 Partner of the Firm has to face the trail?  while it is Clearly mentioned in the deed that Every documents related to firm Must be Jointly Operated by the Managing Partners Only? Bcoz Out of the 4 remaining partners two of them are ladies & all the four partners had no clue about his misuse of cheque. We mentioned the same thing in the Reply notice as well & Moreover he issued the Cheque Only Signed by himself which is Clearly after his Retirement date from the Firm.

Since notice is received in the name of the Partnership firm, you need to respond and cannot ignore it. No point in arguing with the members of the forum who clarify and advise.

Thank you Everyone for your valuable suggestions. Just one clarification needed.  Apart from everyone in the firm facing the trail & if proved Guilty, who is liable to pay the amount? Is it the person who did it or entire Partners of the firm? Please suggest. Thank You!