Indian Partnership Act, 1932
Indian Partnership Act, 1932
CHAPTER IV — RELATIONS OF PARTNERS TO THIRD PARTIES · Section 27

Liability of firm for misapplication by partners

Synced on 13 Aug 2026Text as per India Code

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.

Judgments on Section 27