Section 27 in The Jammu and Kashmir State Partnership Act, 1996
27. Liability of firm for mis-application by partners.
- Where-(a)a partner acting within his apparent authority receives money or property from a third party and mis-applies it, or,(b)a firm in the course of its business receives money or property from a third party, and the money or property is mis-applied by any of the partners while it is in the custody of the firm, the firm is liable to make good the loss.
