What are my rights if my business partner cheats me?

You can file both criminal case (cheating, breach of trust) and civil suit (dissolution, accounting, recovery) against a fraudulent business partner.

Under the Indian Partnership Act, every partner owes fiduciary duties including good faith, honest dealing, and rendering true accounts. If your partner cheats you: (1) File an FIR under BNS Section 316 (criminal breach of trust) and Section 318 (cheating), (2) File a civil suit for dissolution of partnership and proper accounting, (3) Apply for injunction to prevent partner from disposing partnership assets, (4) Claim damages for losses caused by partner's fraud, (5) If partnership deed has arbitration clause, initiate arbitration. A registered partnership deed greatly strengthens your case. Even without a deed, you can prove partnership through conduct, bank accounts, and tax returns. The partner who committed fraud can be held personally liable.

• Indian Partnership Act — Sections 9, 12-15 (Partner duties)
• Indian Partnership Act — Section 44 (Dissolution by court)
• BNS Section 316 — Criminal breach of trust
• BNS Section 318 — Cheating
• Indian Contract Act — Sections 73, 74 (Damages)