Managing partner issued cheque on personal name what to do

901 votes

Dear,

First of all, see if upon deposit of the cheque(s), the cheque(s) is/are honored. If not, issue a legal notice to the managing partner and the firm for making the payment of the amount under cheque(s) within period of 15 days of receipt of the said notice. If they fail to make the payment, file a cheque bounce case under Sec 138 of N.I. Act against the managing partner as well as the firm by making them party no.1 and party no.2 respectively. In addition to the cheque bounce case, if you want to initiate a civil process of recovery, you can file money recovery suit against them in the jurisdictional civil court.

Advocate B. Srikiran LawRato

748 votes

Hi, As per Section 18 of the Indian Partnership Act, 1932, the act of the partner of the firm can well be construed as an act on behalf of all the partners if the circumstances warrant such a conclusion.
However, where a negotiable instrument has been drawn by a partner in his own name, the other partners are not liable on the instrument in the absence of evidence that it was made for and on behalf of the firm. As he has issued in individual capacity he has to be prosecuted individually. For further assistance you can call us through the website.

Advocate Mohammed Abdul Quadeer LawRato

691 votes

This is Suggestion only . U can filed a case under N.I.Act the cheques issued one of the partner of the said company u have observed in the said signed columnof the said cheque the company seal is there or not, if seal is there u have to make party of the company and also the said partner i.e. who issued the cheque is the accused. If in signed column of the said cheque issued by the maker on individual capacity u have to file only individual capacity.

Advocate Mohammed Ghouse LawRato