(Querist) 29 January 2009
This query is : Resolved
Can unregistered partnership firm sue a debtor ? Can a partner of unregistered partnership firm can file suit under N.I. Act ? If yes, kindly provide some citation in both the matters and oblige.
(Expert) 29 January 2009
Sec. 69 of the Partnership Act is very clear on this point. No citation is necessary. 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 behalf of any person 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.
(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.
(3) The provisions of sub-sections (1) and (2) shall apply also to a claim of set-off or other proceeding to enforce a right arising from a contract, but shall not affect -
(a) the enforcement of any right to sue 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, or
(b) the powers of an official assignee, receiver or court under the Presidency-towns Insolvency Act, 1909 (3 of 1909) or the Provincial Insolvency Act, 1920 (5 of 1920) to realise the property of an insolvent partner.
(4) This section shall not apply -
(a) to firms or to partners in firms 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 or claim of set-off not exceeding one hundred rupees in value which, in the Presidency-towns, is not a kind specified in section 19 of the Presidency Small Cause Courts Act, 1882 (5 of 1882), or, outside the Presidency-towns, is not of a kind specified in Schedule II to the Provincial Small Cause Courts Act, 1887 (9 of 1887), or to any proceeding in execution or other proceeding incidental to or arising from any such suit or claim.
(Expert) 30 January 2009
Mr. Palnitkar has done a commendable job.
if you are having an unregistered firm and wish to file suit then you shall have to make it on your own name i.e. sue the defaultero names of the partner. you cant sue the other party on firm's name but ou can sue them on the partner's name.
(Expert) 12 February 2009
Dear Sir, first of all, i make it clear that no suit could be initiated under NI Act as per S. 69 of Partnership Act, however, a complaint under section 138 of NI Act may be instituted. Because it is not a civil suit, and is a criminal complaint.
(Expert) 18 February 2009
Dear Manish, I appreciate your valuable view. but suing somebody does not entrap itself to civil proceedings only infact sue means to fight against somebody for your rights.