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Section 67 – The Indian Trusts Act, 1882

The Indian Trusts Act, 1882

 

67. Wrongful employment by partner-trustee of trust-property for partnership purposes

 

If a partner, being a trustee, wrongfully employs trust-property in the business or on the account of the partnership, no other partner is liable therefor in his personal capacity to the beneficiaries, unless he had notice of the breach of trust.

 

The partners having such notice are jointly and severally liable for the breach of trust.

 

Illustrations

 

(a) 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 tile partnership, retains all the assets in the business. Z may compel him, as partner, to account for so much of tile profits as are derived from A’s share of the capital. B is also answerable to Z for the improper employments of A’s assents.

 

(b) A, a trader, bequeaths his property to B in trust for appoints B his sole executor and dies. B enters into partnership with X and Y in die same trade and employs A’s assents in the partnership business. B given an indemnity to X and Y against the claim,,; of C. Here X and I’ are jointly liable with B to C as having knowingly become parties to the breach of trust committed by B.

 

 

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The Indian Trusts Act, 1882

 

Indian Laws – Bare Acts

 

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