Long Title

Nature of Partnership

Relations of Partners to Persons Dealing with Them

Relations of Partners to One Another

Dissolution of Partnership, and its Consequences

Supplemental

Legislative History

Improper employment of trust property for partnership purposes
13.  If a partner, being a trustee, improperly employs trust property in the business or on the account of the partnership, no other partner is liable for the trust property to the persons beneficially interested therein:
Provided that —
(a)
this section shall not affect any liability incurred by any partner by reason of his having notice of a breach of trust; and
(b)
nothing in this section shall prevent trust money from being followed and recovered from the firm if still in its possession or under its control.