M/S Green Earth Asphalt & Power P.Ltd vs State Of Maharashtra Tr.P.S.O & Ors

The Supreme Court held that under Section 141 of the Negotiable Instruments Act, only partners who are in-charge of the affairs of the firm can be held liable for offences related to dishonoured cheques. The Court found that the High Court erred in quashing the proceedings against the authorized signatory and the firm itself, as necessary averments were not made only against certain partners, not all. Consequently, the appeal was allowed in part, reinstating the proceedings against the firm and the authorized signatory while upholding the quashing for the other partners.