law: Indian Trusts Act, 1882 
  67. Wrongful employment by partner-trustee of
  
  trust-property for partnership purposes 
  If a partner, being a trustee, wrongfully employs trust-property
  
  in the business or on the account of the partnership, no other partner is
  
  liable therefor in his personal capacity to the beneficiaries, unless he had
  
  notice of the breach of trust.
  The partners having such notice are jointly and severally liable
  
  for the breach of trust.
  Illustrations 
  (a) A and B are partners. A dies, having bequeathed all his
  
  property to B in trust for Z, and appointed B his sole executor. B, instead of
  
  winding up the affairs of the partnership, retains all the assets in the
  
  business. Z may compel him, as partner, to account for so much of the profits
  
  as are derived from A's share of the capital. B is also answerable to Z for the
  
  improper employment of A's assets.
  (b) A, a trader, bequeaths his property to B in trust for C.
  
  Appoints B his sole executor, and dies. B enters into partnership with X and Y
  
  in the same trade, and employs A's assets in the partnership business. B gives
  
  an indemnity to X and Y against the claims of C. Here X and Y are jointly
  
  liable with B to C as having knowingly become parties to the breach of trust
  
  committed by B.