A and B are partners. A dies, having bequeathed all his property to B in trust for Z and appointed B…
Illustration (a) to section 67 holds that "Z may compel him, as partner, to account for so much of the profits as are derived from A's share of the capital", and that B is…
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A and B are partners. A dies, having bequeathed all his property to B in trust for Z and appointed B his sole executor. B, instead of winding up the affairs of the partnership, retains all the assets in the business. Under the Indian Trusts Act, 1882, what may Z do?
Answer and explanation
Correct answer C
Illustration (a) to section 67 holds that "Z may compel him, as partner, to account for so much of the profits as are derived from A's share of the capital", and that B is also answerable for the improper employment of A's assets. Section 67 deals with a partner who, being a trustee, wrongfully employs trust-property in the partnership business. Z's claim is measured by the profits earned on A's share, not by a flat half of the firm's profits.