Partners Are Not Distinct from the Firm; Liability Is Joint and Several—NI Act Case Against ‘Sleeping Partners’ Not Quashed: Allahabad High Court
The Allahabad High Court (Lucknow Bench) has delivered a significant ruling interpreting Section 138 and Section 141 of the Negotiable Instruments Act, 1881, especially concerning the liability of partners, including those claiming to be “sleeping partners.” Justice Brij Raj Singh dismissed two criminal petitions filed under Section 482 CrPC (now Section 528 BNSS) seeking quashing of cheque dishonour proceedings. Background of the Case Two applicants, Sonali Verma and another, approached…
