partnership deed

Querist : Anonymous (Querist) 23 March 2010 This query is : Resolved
what are the legal effects of non registration of a partnership deed? There is a partnership firm incorporated upon a non registered partnership deed. I am one of the partners in the above and would like to know what are the legal effects if I have to insitute a suit on the partners? What documents i need to collect to claim my share in the partnership deed.

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R.R. KRISHNAA (Expert) 23 March 2010
The legal effect is as follows:-

A)The unregistered partnership firm cannot file a suit for recovery of money against any other person.

B) But as a partner you are entitled to file a suit against the other partners for accounts and profits.

Daksh (Expert) 23 March 2010
Dear Anonymous,

As per the Sections 17 and 49 of the Indian Registration Act, the Registered document does have more evidentiary value than that of the unregistered ones. Presumably the Partnership Firm even unregistered must be having bank account, books of account and assets/goodwill. Prepare a list of the same for the purposes staking your claim.

Best Regards

Daksh

adv. rajeev ( rajoo ) (Expert) 23 March 2010
I agree with both the learned members answeres

Parveen Kr. Aggarwal (Expert) 23 March 2010
Partnership deed does not require registration under any of the provisions of law.

However, a partnership firm may be registered with the Registrar of Firms and that too is not compulsory.

The legal effect of non-registration of a partnership firm, as provided in section 69 of the Indian Partnership Act, 1932 is that such firm cannot file a suit against third party to enforce a right arising out of the contract. Similarly, partners cannot file suit against each other.

Still a partner may sue the other partners for accounts after dissolving the firm.

Kumar Thadhani (Expert) 23 March 2010
Section 69 IS CLEAR in case of unregistered firm any of the partner cannot institute the suit against the third party to enforce any right arising out of the partnership deed.

Manish Singh (Expert) 29 March 2010
i agree with above views and most particularly of Mr. Praveen Kumar.
partners can file suit against each other, in an unregistered firm, only after its dissolution for settlement of the property.

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