Professional Documents
Culture Documents
Cre 9
Cre 9
Rameshwar. One of the partners issued a promissory note to the plaintiff wherein the partners
were entitled to pay a sum of Rs.5,00,000/- to the other party. The plaintiff claimed for the
money which one of the partners had borrowed, acting during the course of business of the firm.
The partner who had borrowed the said amount had misapplied it and other five partners of the
partnership firm claimed that all the partners did not have the authority in law to raise loans
during the course of business of the partnership firm and hence they are not entitled to pay the
amount, since it was not within the implied authority of the partner to raise loan.
Decide.
You may assume relevant facts but not change these facts.