Where a partner is authorised to recover dues of the partnership & spend the same for the business of the partnership & if he does not deposit the money so collected in the bank, the partner is
Verified Answer
A. Accountable civilly to other partner
B. Guilty of CBT
C. Both (A) or (B)
D. Either (A) or (B)
Explanation:
If a partner is authorized to collect and spend money for the partnership business but fails to deposit it and instead misappropriates it, he is committing a breach of trust. This act can have both civil consequences (accountability to other partners) and criminal consequences (criminal breach of trust under Section 405 of the Indian Penal Code, 1860). Therefore, he is liable both civilly and criminally.