Re: u/s 138 n.i act

All the partners.Internal matter does not effect the right of outsider.

Re: u/s 138 n.i act

it seems that he has used the name of firm and has dealt on behalf of the firm

in these circumstances it seems that the firm will be liable for his acts.

for better advice meet with all papers

Re: u/s 138 n.i act

In an act has been done in the name of the firm then the partnership is liable and all other matters is a matter of internal management with which outsiders are not concerned.

Re: u/s 138 n.i act

The payee of cheque can initiate prosecution against the firm and its partners. However, you can effectively defend the same - (i) If the payee of cheque has accepted the cheque towards discharge of personal debt/liability of the partner who borrowed funds from him/her and (ii) if as per the books of accounts of payee and firm as also other evidence in this behalf, it can be proved that there is no debt or liability towards the payee of cheque.

Re: u/s 138 n.i act

since the loan was raised in the name of firm, surely the firm and its all partners are liable. Merely the cheque was credited to the capital of an individual partner does not change the scene