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) & (B)
D. Either (A) or (B)
Explanation:
A partner has a fiduciary duty to the partnership. Failing to deposit collected funds into the partnership bank account, even if spent for business, constitutes a breach of trust and makes the partner civilly accountable. Depending on the intent and specific circumstances, it could also amount to criminal breach of trust (CBT).