X and Y carry on business in a partnership as bankers. A sum of Rs. 10000 is received by X on behalf of the firm of which Y is not aware. X appropriates the money to his personal use. The partnership is liable to make good the money since receipt of the money by X is in the ordinary course of business.

When X received Rs. 10,000 on behalf of the banking firm, it was in the ordinary course of business. Under partnership law principles (Sections 19-20), any money received by a partner in the firm's name or business is received for the firm. Even though Y was unaware, the firm is liable because X had apparent authority to receive banking transactions.