A,B and C are partners. B is a sleeping partner. A commits certain activity which are prohibited by the criminal laws.B is totally unaware about this. Is still B liable for acts of A? If Yes,why Yes? If No,why No?
Mihir Manohar (CA Final - Article Assistant) (474 Points)
25 June 2012A,B and C are partners. B is a sleeping partner. A commits certain activity which are prohibited by the criminal laws.B is totally unaware about this. Is still B liable for acts of A? If Yes,why Yes? If No,why No?
Anil Bohra
(TAX & FINANCE ADVISOR)
(46 Points)
Replied 26 June 2012
I do not have deeply knowldge about Partnership act but as per my View
YES "B" liable for acts of "A" even though he is sleeping partner
Because he have share of Profit/loss
If thired party object on "A" than all Partner is liable
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