Where a partner is authorised to recover dues of the partnership and spend the same for the business of…

This closely follows Velji Raghavji Patel. A partner authorised both to collect dues and to spend them on partnership business was civilly accountable; failure to deposit those collections in the bank did not establish criminal breach of trust merely from the partnership relationship. Specific entrustment and the other criminal elements must be proved separately.

Current law: The corresponding new-code offences are BNS sections 314 (dishonest misappropriation) and 316 (criminal breach of trust). Mere failure to account remains distinguishable from proof of the statutory criminal elements; IPC continues to govern earlier offences through savings.