Unregistered partnership firm
Querist :
Anonymous
(Querist) 30 June 2011
This query is : Resolved
I have been told earlier that an unregistered partnership firm cannot file a suit.
Can an unregistered partnership firm file an appeal in a a suit it has lost?
Ravikant Soni
(Expert) 30 June 2011
69. EFFECT OF NON-REGISTRATION.
(1) No suit to enforce a right arising from a contract or conferred by this Act shall be instituted in any Court by or on a behalf of any persons suing as a partner in a firm against the firm or any person alleged to be or to have been a partner in the firm unless the firm is registered and the person suing is or has been shown in the Register of Firms as a partner in the firm :
Provided that the requirement of registration of firm under this sub-section shall not apply to the suits or proceedings instituted by the heirs or legal representatives of the deceased partner of a firm for accounts of the firm or to realise the property of the firm.
(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.
(2A) No suit to enforce any right for the dissolution of a firm or for accounts of a dissolved firm or any right or power to realise the property of a dissolved firm shall be instituted in any Court by or on behalf of any person suing as a partner in a firm against the firm or any person alleged to be or have been a partner in the firm, unless the firm is registered and the person suing is or has been shown in the Register of Firms as a partner in the firm :
Provided that the requirement of registration of firm under this sub-section shall not apply to the suits or proceedings instituted by the heirs or legal representatives of the deceased partner of a firm for accounts of a dissolved firm or to realise the property of a dissolved firm.
(3) The provisions of sub-sections (1), (2) and (2A) shall apply also to a claim of set-off or other proceedings to enforce a right arising from a contract but shall not affect
(a) the firms constituted for a duration upto six months or with a capital upto two thousand rupees; or;
(b) the powers of an official assigned, receiver or Court under the Presidency Towns Insolvency Act, 1909, or the Provincial Insolvency Act, 1920, to realise the property of an insolvent partner.
(4) This section shall not apply
(a) to firms or partners in firm which have no place of business in the territories to which this Act extends, or whose places of business in the said territories are situated in areas to which, by notification under section 56 this Chapter does not apply, or
(b) to any suit or claim of set-off not exceeding one hundred rupees in value which, in the presidency towns, is not of a kind specified in section 19 of the Presidency Small Cause Courts Act, 1882, or outside the Presidency towns, is not of a kind specified in the Second Schedule to the Provincial Small Cause Courts Act, 1887, or to any proceeding in execution or other proceeding incidental to or arising from any such suit or claim.
Ravikant Soni
(Expert) 30 June 2011
It is clear here that,
No suit to enforce a right arising from a contract or conferred by this Act shall be instituted in any Court by or on a behalf of any persons suing as a partner in a firm against the firm or any person alleged to be or to have been a partner in the firm unless the firm is registered.
If cause of action is differ from this condition then suit can be filed.
prabhakar singh
(Expert) 30 June 2011
u have been rightly told earlier that an unregistered partnership firm cannot file a suit.
Can an unregistered partnership firm file an appeal in a a suit it has lost?
yes,Appeal is not barred.
Devajyoti Barman
(Expert) 30 June 2011
Appeal is a continuation of suit.
If the unregistered firm is the defendant then he could prefer appeal but if it is the plaintiff then obviously it could not prefer appeal.
Guest
(Expert) 06 July 2011
If the unregistered firm is the defendant then he could prefer appeal -rightly said by devajyoti barman.
