#criminal complaint quashing

The Madhya Pradesh High Court ruled that a partner who retires from a firm remains liable under Section 138 of the Negotiable Instruments Act for cheques issued by the firm during their partnership tenure, pending evidence of liability discharge. This holding reinforces vicarious liability principles in partnership disputes, impacting retired partners facing cheque bounce prosecutions.

The Madhya Pradesh High Court quashed a criminal complaint under the MP Vrikshon Ka Parirakshan Adhiniyam, 2011, ruling that only a statutorily competent authority can initiate proceedings. The decision reinforces that complaints filed by unauthorized entities constitute an abuse of process, impacting environmental litigation and public body interactions.

Punjab and Haryana High Court holds that security cheques issued for commercial liability can trigger Section 138 NI Act prosecution; presumption of debt applies if signature is admitted.