VELJI RAGHAVJI PATEL vs STATE OF MAHARASHTRA

The Supreme Court held that a partner cannot be convicted under Section 409 IPC for failure to account for partnership funds unless it is shown that the dominion over the property was specifically entrusted to him. The Court clarified that mere dominion as a partner does not suffice for criminal breach of trust; there must be a clear agreement of entrustment. The appellant's actions, which included using the funds for partnership business, did not constitute dishonest misappropriation under Section 403 IPC, as he had undefined ownership over the partnership assets.