Offence committed by firm, partner can’t be bifurcated: Karnataka HC

Declining to quash the criminal proceedings against the partner of a firm, the Karnataka High Court ruled that an offence committed by the firm is also an offence committed by the partners and partners and the firm cannot be bifurcated.
Justice K Natarajan passed the order, declining to quash the criminal proceedings against chartered accountant Sanjay Sreesha, who is running NDS & Company, initiated by the Serious Fraud Investigation Office (SFIO), Ministry of Corporate Affairs, before the Special Court for Economic Offences in the city, under Sections 209A and 240(3) of the Companies Act. The firm is not a registered company and it was appointed as the auditor of Mega City (Bangalore) Developers.
The court noted that the petitioner’s arguments are not applicable to the case and the criminal proceedings cannot be quashed against him. The trial court rightly took the cognisance against the petitioner for the offence punishable under Section 240(3) of Companies Act. The petitioner is required to answer the queries or information sought by SFIO. He cannot state that he is appointed as an employee and he is not a firm, the court said.
Alleging that Sreesha failed to appear despite three summons in 2011 and he had sent a reply that he was not employed as auditor of the company, SFIO filed the private complaint against him and the trial court took cognisance.