A, B and C are partners in a firm carrying on money leading business. D, A customer, deposit his Jewellery with the firm for safe custody. A and B sell this jewellery and misappropriate the money C, being a sleeping partner, have no knowledge about this sale. Now, D files a suit against all the three partners. Can C be held liable? Give reasons.
Answers
Answer:
yes C's liable to this
all the partners are liable anything which takes place in firm. either active partner or sleeping partners both are liable.
even sleeping as to know what's going in a company it is his responsibility
Answer:
C will be liable with other partners.
Explanation:
*As per Indian Partnership Act , 1932,
•Sleeping partner is one who does not take in the business.
•Such partner joins the firm by agreement and invests the business like other partners.
•He is liable for acts of the firm.
*In the above case A , B and C are partners in a firm, carrying on money leading business. D, a customer, deposits his jewellery. A and B sell this jewellery without knowing to C, a sleeping partner. D file a suit against all the 3 partners.
In the above case A , B and C are partners in a firm, carrying on money leading business. D, a customer, deposits his jewellery. A and B sell this jewellery without knowing to C, a sleeping partner. D file a suit against all the 3 partners.As per above provision of the Indian Partnership Act, 1932, C will be also liable with the other partners A and B.