# In the matter of Dhanasingh Prabhu vs. Chandrasekar & Another

> SC judgment dated 2025-07-14. Citation: TCN-2025-SC-00080. The appellant filed a criminal appeal against the Madras High Court's order which quashed a…

- **Court:** SC
- **Order date:** 14 Jul 2025
- **Citation:** TCN-2025-SC-00080
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/dhanasingh-prabhu-vs-chandrasekar-another-80567edb

## Summary

### Background

The appellant filed a criminal appeal against the Madras High Court's order which quashed a complaint filed by the appellant against the respondents under Section 138 of the Negotiable Instruments Act, 1881. The High Court quashed the complaint because the statutory notice was not issued to the partnership firm, and the firm was not arraigned as an accused.

## Facts

The appellant advanced a loan of Rs. 21,00,000/- to the respondents' partnership firm, 'Mouriya Coirs'.

Respondent No. 1 issued a cheque for Rs. 21,00,000/- in favor of the appellant from the firm's account.

The cheque was dishonored because the partnership firm's account had been frozen.

The appellant issued a statutory notice to the respondents demanding discharge of the debt.

The appellant filed a complaint under Section 138 of the Negotiable Instruments Act before the Judicial Magistrate No. II, Pollachi.

The respondents filed a Criminal Original Petition before the High Court to quash the complaint.

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## Issues and analysis

### Issue 1: Whether a partnership firm must be arraigned as an accused and issued a statutory notice for a …

**Ratio:** A partnership firm is not a separate legal entity distinct from its partners. Therefore,

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**Reasoning:** The court reasoned that a partnership firm is a compendious term for its partners. Notice

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**Interpretation:** The court interpreted Section 141 of the Negotiable Instruments Act,

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**Application:** The court applied the principle that the partners of a firm are personally

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## Parties

- **Judges:** Nagara…; J.…; +1 more
- **Appellants:** Dhanasingh…
- **Respondents:** Chandra…; anot…
- **Other parties:** Over Tu…

## Timeline

- **2024-02-26 — Madras High Co…**: The Madras High Court allowed the Criminal Original Petition No.1533/2024 and quashed the…
- **2025-07-14 — Supreme Court…**: The Supreme Court set aside the High Court's order and restored the complaint. The Court…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 138 — Discharge order](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-138)

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