B and M were carrying on the business of cinematographic theatre proprietors B was a sleeping partne...........

Indian Partnershoip Act (IPA) 1930 Others

B and M were carrying on the business of cinematographic theatre proprietors. B was a sleeping partner and M managed the business. The partnership deed provided that no partner should contract any debt on account of the partnership without the consent of the other partner except in the usual and regular course of business M borrowed money from C stating that the money was to be used for the partnership business. But he misappropriated it. C sued B.

B is not liable on the ground that the business of the firm was not a trading one and therefore the firm was not bound by the loan taken by M.

B is liable in view of the implied authority of another partner.

B is liable in view of the joint liability of the partners.

B is not liable for the fraud of M.

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