APHC010310822023 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3396] FRIDAY, THE TWENTY SIXTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE DR. JUSTICE VENKATA JYOTHIRMAI PRATAPA CRIMINAL PETITION NO: 4398/2023 Between: 1. MUSULURI SURESH BABU, S/O ANJAIAH, AGED 51 YEARS, HINDU, PRIVATE EMPLOYEE, PRESENT R/O C-28, JK ROAD, GOVINDAPURA, BHOPAL, MADHYA PRADESH-462023, INDIA OR N/O THIMMANAPALEM VILLAGE, KORISAPADU MANDAL, BAPATLA DISTRICT-523212, A.P., INDIA. 2. MUSULURI RADHA, W/O SURESH BABU, AGED 45 YEARS, HINDU, HOUSE WIFE, R/O C-28, JK ROAD, GOVINDAPURA, BHOPAAL, MADHYA PRADESH-462023, INDIA OR N/O THIMMANAPALEM VILLAGE, KORISAPADU MANDAL, BAPATLA DISTRICT-523212, A.P., INDIA. ...PETITIONER/ACCUSED(S) AND 1. MANNAM VENKATA SESHAIAH, (COMPLAINANT), S/O RAMA SWAMY, AGED 62 YEARS, HINDU, BUSINESS, R/O 6TH LINE, RAMANAGAR, ONGOLE TOWN, PRAKASAM DISTRICT, ANDHRA PRADESH-523001, INDIA. 2. THE STATE OF ANDHRA PRADESH, REPRESENTED BY PUBLIC PROSECUTOR HIGH COURT OF ANDHRA PRADESH ...RESPONDENT/COMPLAINANT(S): Counsel for the Petitioner/accused(S): 1. SS RAMA KRISHNA PRASAD Counsel for the Respondent/complainant(S): 1. PUBLIC PROSECUTOR (AP) The Court made the following: ORDER: The instant petition under Section 482 of Code of Criminal Procedure (for short „Cr.P.C‟) has been filed by the Petitioners / Accused Nos.3 and 11, seeking to quash the proceedings against them in C.C.No.1076 of 2016 on the file of the 2 Court of II Additional Judicial First Class Magistrate, Ongole for the offence under Section 138 of Negotiable Instruments Act,1881 (for short „N.I.Act‟). 2. Sri S.Siva Rama Krishna Prasad, learned counsel for the Petitioners would submit that the allegations levelled against the Petitioners are false. Learned counsel would further submit that the Petitioners never borrowed any amount from the complainant nor issued the subject cheque. Learned counsel would further submit that, as per the terms and conditions of the Partnership Deed dated 28.11.2007, Accused Nos.2 and 14, are the Managing Partners of A.1- firm and the Petitioners are the sleeping partners of the firm. The Petitioners are no way concerned with the alleged borrowal and issuance of subject cheque. Therefore, continuation of proceedings against the Petitioners is an abuse of process of law. 3. Inspite of service of notice, none appeared for Respondent No.1/Complainant. 4. It is alleged in the complaint that, A.1 is a partnership firm represented by Accused No.2 who is the Managing Partner and Accused Nos.3 to 15 are the other partners of the said firm. It is further alleged that, all the Accused borrowed a sum of Rs.10,00,000/- from the Complainant on 30.03.2023 for their business, agreeing to repay the same with an interest @ 24% per annum compounded annually. On repeated demands of the Complainant, a cheque bearing No.272876 dated 22.03.2015 was issued by A.1-firm for an amount of Rs.15,00,000/- drawn on State Bank of India, Addanki branch towards part satisfaction of the amount. On presentation of the same before his banker by the Complainant, the same was dishonoured for the reason “funds insufficient” in the 3 account of A.1-Firm. In spite of issuance of notice, no amount has been paid by the Accused. 5. As seen from the Partnership Deed dated 28.11.2007, it is clear that the Petitioners / Accused Nos.3 and 11 are the sleeping partners of A.1- firm and Accused Nos.2 and 14 are its Managing Partners, who are authorized to operate the bank account in the name of A.1- firm and also to borrow amounts from the banks and individuals. The subject cheque was also issued by the Accused No.2 in the name of A.1- firm in the capacity of its Managing Partner. Vicarious liability cannot be attributed against the Petitioners / Accused Nos.3 and 11, who are the sleeping partners of A.1- firm. In such circumstances, continuation of proceedings against the Petitioners is an abuse of process of law. Therefore, this Court is of the considered view that, it is a fit case for quashment of the proceedings against the Petitioners by exercising the inherent power under Section 482 Cr.P.C. 6. Accordingly, the Criminal Petition is allowed and the proceedings against the Petitioners / Accused Nos.3 and 11 in C.C.No.1076 of 2016 on the file of the Court of II Additional Judicial First Class Magistrate, Ongole, for the offence under Section 138 of Negotiable Instruments Act, are hereby quashed. Pending miscellaneous petitions, if any, shall stand closed. ________________________________________ Dr.JUSTICE VENKATA JYOTHIRMAI PRATAPA Date: 26.09.2025 Dinesh 4 HON’BLE DR. JUSTICE VENKATA JYOTHIRMAI PRATAPA Crl.P.No.4398 of 2023 Dt.26.09.2025 Dinesh