Smt. Katta Sujatha vs Fertilizers & Chem. Travancore Ltd. And ...

The Supreme Court held that under Section 138 of the Negotiable Instruments Act, 1881, a partner of a firm can only be held liable if they are in charge of and responsible for the conduct of the firm's business, or if the offence was committed with their consent or connivance. The Court found that the appellant was not involved in the transactions related to the cheque and did not meet the criteria for liability under Section 141 of the Act. Consequently, the appeal was allowed, the High Court's order was set aside, and the criminal proceedings against the appellant were quashed.