Law4u - Made in India

Can a business partner be sued for recovery of misused funds?

25-Feb-2025
Recovery

Answer By law4u team

Yes, a business partner can be sued for the recovery of misused funds under Indian law. The legal remedies depend on the nature of the partnership and the extent of the misappropriation. Legal Remedies Available: Civil Suit for Recovery – A partner can file a civil suit for recovery of funds under the Indian Contract Act, 1872, and the Code of Civil Procedure, 1908. If the misused funds belong to the partnership firm, the suit should be filed on behalf of the firm. Dissolution of Partnership – If the misuse of funds is serious, the affected partner can seek dissolution of the partnership under the Indian Partnership Act, 1932, and claim their rightful share. Criminal Complaint for Fraud or Misappropriation – If the partner has committed fraud, cheating, or criminal breach of trust, a criminal case can be filed under: Section 406 IPC (Criminal Breach of Trust) Section 420 IPC (Cheating) Arbitration Clause (if applicable) – If the partnership agreement includes an arbitration clause, the dispute can be resolved through arbitration under the Arbitration and Conciliation Act, 1996. The best legal remedy depends on the nature of the partnership agreement and the extent of financial misuse.

Recovery Verified Advocates

Get expert legal advice instantly.

Advocate Lalit Tiwari

Advocate Lalit Tiwari

Anticipatory Bail, Arbitration, Armed Forces Tribunal, Bankruptcy & Insolvency, Banking & Finance, Breach of Contract, Cheque Bounce, Child Custody, Civil, Consumer Court, Corporate, Court Marriage, Customs & Central Excise, Criminal, Cyber Crime, Divorce, Documentation, GST, Domestic Violence, Family, High Court, Immigration, Insurance, International Law, Labour & Service, Landlord & Tenant, Media and Entertainment, Medical Negligence, Motor Accident, Muslim Law, NCLT, Patent, Property, R.T.I, Recovery, RERA, Startup, Succession Certificate, Supreme Court, Tax, Trademark & Copyright, Wills Trusts, Revenue

Get Advice
Advocate Nidhi Upman

Advocate Nidhi Upman

Arbitration, Banking & Finance, Civil, Court Marriage, Criminal, Cyber Crime, Divorce, GST, Domestic Violence, Family, High Court, Insurance, Motor Accident, Muslim Law, Property, Recovery

Get Advice
Advocate Sakshi Singh

Advocate Sakshi Singh

Anticipatory Bail, Arbitration, Bankruptcy & Insolvency, Banking & Finance, Breach of Contract, Cheque Bounce, Child Custody, Civil, Consumer Court, Court Marriage, Customs & Central Excise, Criminal, Corporate, Armed Forces Tribunal, Cyber Crime, Divorce, Domestic Violence, Family, High Court, Insurance, Labour & Service, Landlord & Tenant, Medical Negligence, Motor Accident, Muslim Law, NCLT, Property, R.T.I, Recovery, Supreme Court, Documentation, GST, Immigration, International Law, Media and Entertainment, Patent, Startup, RERA, Succession Certificate, Tax, Trademark & Copyright, Wills Trusts, Revenue

Get Advice
Advocate Gaurav Kumar

Advocate Gaurav Kumar

Anticipatory Bail, Arbitration, Bankruptcy & Insolvency, Banking & Finance, Breach of Contract, Cheque Bounce, Court Marriage, Criminal, Cyber Crime, Divorce, Documentation, High Court, Property, Recovery, Wills Trusts, R.T.I, Labour & Service, Landlord & Tenant, Family, Consumer Court, Motor Accident, Child Custody

Get Advice
Advocate Bhavesh Chimanlal Patel

Advocate Bhavesh Chimanlal Patel

High Court, Anticipatory Bail, Criminal, Property, Motor Accident, R.T.I, Wills Trusts, Revenue, Recovery, Divorce, Civil, Cheque Bounce, Child Custody, Court Marriage, Corporate, Consumer Court, Cyber Crime, Documentation, Medical Negligence, Media and Entertainment, RERA

Get Advice
Advocate Rajya Lakshmi Bandaru

Advocate Rajya Lakshmi Bandaru

Anticipatory Bail, Arbitration, Bankruptcy & Insolvency, Banking & Finance, Breach of Contract, Cheque Bounce, Child Custody, Civil, Consumer Court, Court Marriage, Criminal, Cyber Crime, Divorce, Documentation, GST, Domestic Violence, Family, High Court, Insurance, Labour & Service, Landlord & Tenant, Media and Entertainment, Medical Negligence, Motor Accident, Muslim Law, NCLT, Property, R.T.I, Recovery, Startup, Succession Certificate, Tax, Wills Trusts, Revenue

Get Advice
Advocate Mohanjeet Singh

Advocate Mohanjeet Singh

Anticipatory Bail, Cheque Bounce, Child Custody, Civil, Court Marriage, Criminal, Cyber Crime, Divorce, Domestic Violence, Family, High Court, Landlord & Tenant, Media and Entertainment, Motor Accident, Muslim Law, Property, R.T.I, Recovery, Wills Trusts

Get Advice
Advocate Amar Singh

Advocate Amar Singh

Arbitration, Breach of Contract, Civil, High Court, Insurance, Domestic Violence, Muslim Law, Landlord & Tenant, Anticipatory Bail, Banking & Finance, Consumer Court, Cyber Crime, Armed Forces Tribunal, Bankruptcy & Insolvency, Child Custody, Cheque Bounce, Court Marriage, Corporate, Divorce, Immigration, Documentation, Customs & Central Excise, GST, Criminal, Family, Labour & Service, International Law, Media and Entertainment, Medical Negligence, Motor Accident, Recovery, R.T.I, Property, Patent, NCLT, Succession Certificate, Revenue, Wills Trusts, Tax, Trademark & Copyright, RERA, Startup

Get Advice
Advocate Ayub Khan

Advocate Ayub Khan

High Court,Recovery,Civil,Criminal,Revenue,Cyber Crime,Bankruptcy & Insolvency,Anticipatory Bail,Consumer Court,Corporate,

Get Advice
Advocate Aditya Vikram Tiwari

Advocate Aditya Vikram Tiwari

Banking & Finance, Recovery, Civil, Property, Revenue

Get Advice

Recovery Related Questions

Discover clear and detailed answers to common questions about Breach of Contract. Learn about procedures and more in straightforward language.