Partner ship act
Ankitaaaaa
(Querist) 03 November 2011
This query is : Resolved
Dear Friends/ Seniors,
I am new to this site, hence start with giing regards to all learned and experts of subject.
I have a small query, need to understand the risk involved in dealing with a partner ship firm which is not regiseterd.
Further, in absence of registration can the third party enforce claims and make the firms or partnes liable.
REgards,
Ankita
ajay sethi
(Expert) 03 November 2011
it is advisable to get partnership registered . in absence of registartion firm cannot sue for recovery of its dues etc . however third parties can sue the firm
section 69 of partnership act 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.
prabhakar singh
(Expert) 03 November 2011
"I have a small query, need to understand the risk involved in dealing with a partner ship firm which is not registered."
IN ITS ANSWER I STATE THAT THERE IS NO RISK TO THIRD PARTIES DEALING WITH A PARTNERSHIP FIRM NOT REGISTERED WITH REGISTRAR OF FIRMS.
AND IN ANSWER TO"Further, in absence of registration can the third party enforce claims and make the firms or partnes liable."
I STATE THAT YES VERY WELL.
The registration of the partnership firm is an optional matter for the firm and its partners,If unregistered ,the firm can not sue third parties but third parties can sue it very well.
The next disadvantage to unregistered firm is that suits for dispute between partners or with firm and a partner can not be filed.
This way the provision of registration in effect able a registered firm to file law suits and disables those which are not registered from filing law suits either enter se or against third parties.
Guest
(Expert) 03 November 2011
i agree with experts. and no more to add
prabhakar singh
(Expert) 03 November 2011
what goers from you even if you add dear!
Ankitaaaaa
(Querist) 04 November 2011
Thanks a lot to all the experts, who took out time and put in efforts to reply to my query.
Best Regards,
Ankita
