Can a unregistered firm file suit to recover rent arrears


We are a unregistered partnership firm, being, lease holder of a building premises, portion of which was rented out to a nationalised bank under lease agreement (not registered) for a period of 21 years.

After expiry of the lease period, the agreement was not renewed but the bank preferred to overstay in the premises for 8 months even after notice to vacate was served by us. Hence, we asked to rent at prevailing market rate based on the rent being paid by another tenant in the said premises. The bank refused to pay the increased rent amount. Our firm, thru its partner, have instituted a suit asking for increased rent .

Under the cirumstances, we would like to know whether our suit will be maintainable owing to the fact that a) The leasee knew that we are a unregistered fim b) Lease agreement was being honored by the leasee with increased rent from time to time as per the terms of the lease c) It had failed to vacate the premises after expiry of the lease period. Also if you can suggest any case law in support of your opinion. 

 
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Social Worker

Daer Sir

Even if teh other party new that it was not a registered firm you cannot enforce the contract

You are lucky that teh other party paid u a rent for 21 years

 

Section 69 in The Indian Partnership Act, 1932

69. Effect of non- registration.

Section 69 (2) No suit to enforce a right arising from a contract shall be instituted in any Court by or on behalf of a firm against any third party unless the firm is registered and the persons suing are or have been shown in the Register of Firms as partners in the firm.

 
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senior

ur lease agreement is invalid as it is not regd.

 
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