Section 27, Indian Partnership Act, 1932 — Liability of firm for misapplication by partners

Chapter IV · Relations of Partners to Third Parties

27Liability of firm for misapplication by partners.

Section 27 · Chapter IV · page 8 of the Act

Where—

(a) a partner acting within his apparent authority receives money or property from a third party and misapplies it, or

(b) a firm in the course of its business receives money or property from a third party, and the money or property is misapplied by any of the partners while it is in the custody of the firm, the firm is liable to make good the loss.

Section 27 of The Indian Partnership Act, 1932 is reproduced in full above, as printed by India Code, with its footnotes and amendment markers. Read the whole Act, or browse every Act on Mera Samvidhaan.