In a partnership firm, the liability of partners for a cheque bounce is as follows: Joint and Several Liability: Partners in a partnership firm are jointly and severally liable for the debts and obligations of the firm, including any liability arising from a cheque bounce. This means that if a cheque issued by the firm bounces, any partner can be held personally liable for the entire amount of the dishonored cheque, in addition to the firm itself. Liability Under Section 138 of the Negotiable Instruments Act, 1881: Under this section, if a cheque is dishonored due to insufficient funds or other reasons, the payee can initiate legal proceedings against the drawer of the cheque. In the case of a partnership firm, the drawer is the firm, but the individual partners can be held personally liable as well. Criminal Liability: If the cheque bounce is due to an intentional dishonor, i.e., the cheque was issued with knowledge of insufficient funds or with the intention to deceive, the partners may face criminal liability under Section 138 of the Negotiable Instruments Act. This includes imprisonment for up to two years or a fine (which can be twice the amount of the cheque) or both. Civil Liability: Partners may also be liable in a civil court for the recovery of the amount due on the bounced cheque. The partner can be personally sued, and their personal assets may be at risk in case the firm’s assets are insufficient to cover the liability. Responsibility of Active Partners: While all partners are liable for the firm's debts, active partners who were directly involved in the issuance of the dishonored cheque or in the decision-making may face more direct legal action. In contrast, sleeping or dormant partners might not be as involved in the legal action but are still liable under the partnership agreement. Liability Post Dissolution: Even after the dissolution of the partnership firm, the liability for a bounced cheque may continue. The partners may remain personally liable for any debts incurred during the existence of the firm, including those arising from a dishonored cheque. In summary, all partners in a partnership firm are jointly and severally liable for the consequences of a cheque bounce, which includes both civil and criminal liability, depending on the circumstances of the dishonor.