Liability of firm for misapplication by partners
Commencement. 1932-10-01 (except section 69) 1933-10-01
Section 27 of the Indian Partnership Act, 1932 deals with liability of firm for misapplication by partners. Where-- (a) a partner acting within his apparent authority receives money or property from a third party and misapplies 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 misapplied by any of the partners while it is in the cus The Act was enacted on 08 Apr 1932.
Where--
(a) a partner acting within his apparent authority receives money or property from a third party and misapplies 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 misapplied by any of the partners while it is in the custody of the firm,
the firm is liable to make good the loss.
Section 27, The Indian Partnership Act, 1932 (Act 9 of 1932).
Questions about Section 27
What does Section 27 of the Indian Partnership Act deal with?
Section 27 of the Indian Partnership Act is headed "Liability of firm for misapplication by partners". Where-- (a) a partner acting within his apparent authority receives money or property from a third party and misapplies 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 misapplied by any of the partners while it is in the cus
How do I find court cases under Section 27 of the Indian Partnership Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Partnership Act 27, section 27 Partnership Act, section 27 of the Indian Partnership Act. People searching for it also type indian partnership act 1932 section 27. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
When was Section 27 of the Indian Partnership Act enacted?
Section 27 of the Indian Partnership Act, cited as Partnership Act 27, was enacted on 08 Apr 1932 as Act 9 of 1932. It is in force as at the date shown on this page.
Other sections of this Act
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.