Discuss the liability of a partner for tortious acts of another partner.

Question: Discuss the liability of a partner for tortious acts of another partner. [BJS 1987]

Find the answer to the mains question of the Law of Partnership only on Legal Bites. [Discuss the liability of a partner for tortious acts of another partner.]

Answer

Under the Indian Partnership Act, 1932, the liability of a partner for the tortious acts of another partner acting as an agent is governed by the general principles of agency law and the specific provisions of the Partnership Act. Let's discuss the liability in such a scenario:

General Principles of Agency: In a partnership, each partner is considered an agent of the firm and also an agent of the other partners. This means that partners have the authority to act on behalf of the partnership within the scope of their partnership business. As agents of the partnership, partners can bind the firm and other partners through their actions, including tortious acts, performed in the ordinary course of business or with the authority of the other partners.

Joint and Several Liability: Under Section 25 of the Indian Partnership Act, every partner is jointly and severally liable for the debts and obligations of the partnership, including liability arising from the tortious acts of any partner acting as an agent. These joint and several liabilities mean that if a partner acting as an agent commits a tort within the scope of the partnership business or with the authority of the other partners, all partners can be held jointly and severally liable for the consequences of that act.

Contribution: As mentioned earlier, partners who have paid more than their proportionate share of the liability can seek contribution from the partner who committed the tortious act. If a partner acting as an agent has caused harm and another partner has paid more than their share of the damages, they have the right to claim reimbursement from the partner who committed the tort.

It's important to note that the liability of partners for tortious acts can also be affected by any partnership agreement or specific terms of agency established between the partners. If the partnership agreement or agency arrangement specifies the extent of liability or limits the liability of partners for the tortious acts of another partner acting as an agent, those provisions will govern the situation.

Additionally, partners acting as agents should act within the scope of their authority and in accordance with their fiduciary duties to the partnership. If a partner acting as an agent goes beyond their authorized scope of authority and commits a tortious act, they may bear personal liability for their actions, and the other partners may not be held jointly and severally liable.

In conclusion, under the Indian Partnership Act, partners can be held jointly and severally liable for the tortious acts of another partner acting as an agent if the acts were within the scope of the partnership business or authorized by the other partners. However, partners have the right to seek contribution from the partner who committed the tort if they have paid more than their proportionate share of the damages.