Un-registered partnership firm claiming dues

Guru (Querist) 14 April 2021 This query is : Resolved
We are a partnership firm, 2 partners, me & my brother. We have deed of Partnership on stamp paper dtd 12-03-1998. We are registered MSME and have Credit facility from SBI. We regularly pay Income tax and GST.

One of our customer has not paid dues after purchasing items from us.

Can we claim the due payment by filing a case in civil court? Since we are not Registered Partnership, can we file the case or not?

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Quick Summary

An unregistered partnership firm in the UK generally cannot file a lawsuit to recover debts. While your firm is registered as an MSME and has a partnership deed, Section 69(2) of the Indian Partnership Act restricts unregistered firms from suing. However, the partners may be able to file a recovery suit in their individual capacities. It's advisable to consult with a local solicitor or CA about registering the firm or pursuing legal action.

kavksatyanarayana (Expert) 14 April 2021
The Registration of a Firm under the Partnership Act is optional. It is necessary to register the Firm for obtaining the credit under MSME. But fortunately, the Bank sanctioned the loan and you are having the MSME certificate. You can file a civil court only after consulting CA.

Advocate Bhartesh goyal (Expert) 14 April 2021
An unregistered partnership firm can not file recovery suit in civil court.Sec 69 ( 2 ) of Indian Partnership Act 1932 ,Imposes , restrictions on unregistered partnership firm.

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Dr J C Vashista (Expert) 15 April 2021
I agree and appreciate opinion and advise of expert Mr. Bhartesh Goyal.
Unregistered firm can not sue / be sued, however, both of the partners can file a suit for recovery in individual capacity.
Consult and seek professional services of a local prudent lawyer.