Is my partnership deeds legal
Nicky
(Querist) 21 October 2011
This query is : Resolved
Hi, I have entered into a Partnership deed agreement on April 2011 in Mumbai with my friend on a Rs 500 Stamp paper to operate Business of Human Resources consultancy but we don't have any registration No of our Firm.
So, My Question is...
1, Is my Firm legal to Operate Business without Registration No.
2, Do we fall under the Category of Human Trafficking as we Recruit People for Jobs.
3, Can we make a Contract with any Company for Recruiting their Staff.
4, Can we make agreement with terms & Conditions with any company on my company Letterhead.
5, Even if i don't make agreement on a Stamp Paper with a company, is it valid on a company letterhead.
Waiting for your Expert Feedback.
ajay sethi
(Expert) 21 October 2011
it is advisable to have partnership firm registered . under section 69 of partnership act 1932 Unregistered firm cannot file suit for the recovery of the dues or for other matters against third parties.
The partner of an un-registered firm cannot bring a suit for the enforcement of right against a third party or his co-partner unless the firm is registered
however third party can file suit against un registered firms
Nadeem Qureshi
(Expert) 21 October 2011
Dear Nicky
Section 69 in The Indian Partnership Act, 1932
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 claim of set- off or other proceeding to enforce a right arising from 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 , (2 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 1[ the territories to which this Act extends], or whose places of business in 2[ the said territories] are situated in areas to which, by notification under 3[ 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 , (15 of 1882 ). or, outside the Presidency- towns, is not of a kind specified in the Second Schedule to the Provincial Small Cause Courts Act, 1887 , (9 of 1887 ). or to any pro- ceeding in execution or other proceeding incidental to or arising from any such suit or claim.
Ravikant Soni
(Expert) 21 October 2011
There is no any obstacle in running business but consequences in certain legal matters r to be tolerated as explained by NADEEM.
Raj Kumar Makkad
(Expert) 21 October 2011
1. Partnership is not illegal merely on the ground that it is not registered.
2. If your firm is not permitted by Ministry of Labour & Employment then you come within human trafficking.
3. Yes.
4. Yes.
5. No because your firm is not registered as on date.
Shailesh Kr. Shah
(Expert) 23 October 2011
Contribution of all experts is appreciable. Shri Makkad answered to the point on the other part well guided on effect of non-registration of partnership by Shri Sethi and Shri Nadeem.
M V Gupta
(Expert) 23 October 2011
In addition to the formalities of registration under the Partnership Act,and obtaining license from the Ministry of Labor and Employment, you are required to register your establishment under the Sops And Establishments Act of your State.You are also required to put up all the certificates of registration on Notice board of your Office and maintain proper records as required under the Shops And Establishments Act.
Devajyoti Barman
(Expert) 24 October 2011
Yes rightly advised. Section 69 clears the doubt of the author.
Nicky
(Querist) 25 October 2011
Thank you all for the valuable feedback..Thank you once again for clearing my Doubt.
