Partnership firm

Guest (Querist) 08 September 2010 This query is : Resolved
If a partnership deed inter se partners is entered today and say after 3 or 4 months the application for registration of the said firm is made and the same gets registered after an about year after the constitution of the firm. now my question is :
1. When can a partnership firm be said to have come into existence i.e. whether on the date of the entering of the contract of partnership or from the date of the registration ?

2. What is the legal effect of a contract which is entered into a pre-registration period but after the formation of the partnership deed ? more specifically i want to know whether such a contract can be legal and valid notwithstanding the fact that it cannot be enforced in view of the sec. 69 of the partnership act. in fine, i believe humly that there is no legal bar to an unregistered firm to enter into a contract the only thing is that it cannot be enforced at its instance. am i correct ?

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Devajyoti Barman (Expert) 08 September 2010
1. On the date of execution of the partnership agreement.
2. The contract entered into prior to registration is very much valid and enforceable. Section 69 of the Partnership Act comes into play only at the time of filing a suit , not at the time of entering into any contract.

s.subramanian (Expert) 08 September 2010
Yes Mr.Harnish. the prohibition u/s 69 related only to approaching court of law by unregistered firms. It has nothing to do with contracts. But if any problem crops up in the contract,you cannot approach the court if the firm is unregistered.

R.Ranganathan (Expert) 08 September 2010
yes. Unregistered Partnership is valid in the eyes of law. But only disadvantage to the Unregistered partnership is that it cannot sue on its own but it can be sued by others. All contracts and agreements entered into by an Unregistered firm is valid.