According to Indian Partnership Act .....it is stated that the partners have unlimited liability but when the firm is dissolved and if any of the partners become insolvent ...then the solvent partners need to coupe that deficiency of insolvent partner in the Profit sharing Ratio

The loss arising out of a partner refers to a financial loss that occurs as a result of a partner's actions or decisions in a business partnership. This loss can occur due to various factors, such as mismanagement, fraud, negligence, or breach of fiduciary duty by a partner.

When a partner engages in activities that result in a financial loss for the partnership, it can have significant implications for the other partners. They may be held personally liable for the loss and may have to contribute additional funds to cover the losses suffered by the partnership.

In some cases, the loss arising out of a partner's actions may also lead to legal disputes and litigation between the partners. The innocent partners may seek to recover their losses through legal means, such as filing a lawsuit against the partner responsible for the loss.

To mitigate the risk of loss arising out of a partner, it is important for partners to have clear and well-drafted partnership agreements that outline the rights, responsibilities, and liabilities of each partner. It is also essential to have open communication and regular financial reporting to identify any potential issues or risks early on.

Additionally, partners should conduct due diligence before entering into a partnership to ensure that the other partner has a good track record, financial stability, and a history of ethical business practices. Regular monitoring and supervision of the partner's activities can also help identify any potential risks or misconduct before they result in significant losses.