If a partner chooses to use any assets of the partnership firm for his own purpose, it gives rise to
On the bare facts given, a partner must account civilly for unauthorised personal use of firm assets. Such use does not by itself establish criminal breach of trust: Velji…
Choose your answer
If a partner chooses to use any assets of the partnership firm for his own purpose, it gives rise to
Answer and explanation
Correct answer A
On the bare facts given, a partner must account civilly for unauthorised personal use of firm assets. Such use does not by itself establish criminal breach of trust: Velji Raghavji Patel requires specific entrustment, not simply the dominion that follows from being a co-owner partner. Additional facts establishing an offence could produce criminal liability, but they are not stated.
Current law: BNS section 316 now governs criminal breach of trust for conduct governed by the new code. Its entrustment requirement does not make every unauthorised use of partnership assets a criminal offence; the civil/criminal distinction remains.
Practice for these exams
-
UGC NET Law
Subject revision
See pack details on LawMint.net -
Bihar Judicial Services
-
CUET PG Law (LL.M.)
Subject revision
-
Uttarakhand Judicial Services
Subject revision